ENTREPRENEURIAL MARKETING
PRICING STRATEGIES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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fixed costs
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variable costs
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target costs
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total costs
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Detailed explanation-1: -A variable cost is a corporate expense that changes in proportion to how much a company produces or sells. Variable costs increase or decrease depending on a company’s production or sales volume-they rise as production increases and fall as production decreases.
Detailed explanation-2: -A variable cost is an ongoing cost that changes in value according to factors like sales revenue and output. Variable costs include labor, raw materials and distribution costs.
Detailed explanation-3: -Variable costs are also referred to as prime costs or direct costs as it directly affects the output levels. Fixed costs are time-related i.e. they remain constant for a period of time. Variable costs are volume-related and change with the changes in output level.