32808557
Description
Flashcards by Jamie Plym, updated more than 1 year ago
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Created by Jamie Plym
about 3 years ago
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| Question | Answer |
| Cost-plus pricing | A pricing method in which a predetermined markup is applied to a cost base to determine the target selling price. |
| Economic value to the customer (EVC) | The price of a customer’s best alternative (called the reference value) plus the value of what differentiates a product from that alternative (called the differentiation value). |
| Markup | The difference between the selling price of a product or service and its cost. The markup is usually expressed as a percentage of cost. |
| Price elasticity of demand | A measure of the degree to which a change in price affects the unit sales of a product or service. |
| Target costing | The process of determining the maximum allowable cost for a new product and then developing a prototype that can be profitably made for that maximum target cost figure. |
| Value-based pricing | A pricing method in which a company establishes selling prices based on the economic value of the benefits that their products and services provide to customers. |
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