Costbased prices Select one a are one way of setting prices

Cost-based prices ________.

Select one: a. are one way of setting prices in a competitive market

b. provide an inherit incentive for the producer to control costs

c. pass the majority of risk to the buyer

d. are required in all government contracts

Solution

Correct answer is option (c). Pass the majority of risk to the buyer

Explanation;

As we know that under cost-based prices method seller fixes prices of the products & services by including all types of the costs and a certain portion of the profit is added to total costs of the product and service. Thus it pass the majority of the risk to the buyer. Hence option (c) is correct answer. Other options are incorrect.