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When pricing a potential job, a plumber considers how long the job will take and how difficult it will be - HSC - SSCE Business Studies - Question 7 - 2015 - Paper 1
Question 7
When pricing a potential job, a plumber considers how long the job will take and how difficult it will be. Which pricing method is being used? (A) Cost-based (B) M... show full transcript
Worked Solution & Example Answer:When pricing a potential job, a plumber considers how long the job will take and how difficult it will be - HSC - SSCE Business Studies - Question 7 - 2015 - Paper 1
Step 1
Which pricing method is being used?
Answer
The pricing method being used is Cost-based pricing (Option A). This is because the plumber is taking into account the time and effort required for the job, which directly relates to the costs incurred. Cost-based pricing typically involves assessing the total cost of providing a service and then adding a markup for profit.