Explain five factors that should be taken into consideration while det

1.	Explain five factors that should be taken into consideration while determining the price of a product or service.
Answer» Cost of Production : Cost of production/service is the main component of price. No company can sell its product or sen ices at less than the cost of production. Before price fixation, it is necessary to compile data relating to the cost of production and keep that in mind. Demand for Product: Intensiv e study of demand for product and sen ices in the market be undertaken before price fixation. If demand is relatively more than supply , higher price can be fixed. Price of Competing Firms: It is necessary to take into consideration prices of the products of the competing firms before fixing the price. In case of cut-throat competition prices are required to be kept low.

Explain five factors that should be taken into consideration while determining the price of a product or service.

Answer»

Cost of Production : Cost of production/service is the main component of price. No company can sell its product or sen ices at less than the cost of production. Before price fixation, it is necessary to compile data relating to the cost of production and keep that in mind.

Demand for Product: Intensiv e study of demand for product and sen ices in the market be undertaken before price fixation. If demand is relatively more than supply , higher price can be fixed.

Price of Competing Firms: It is necessary to take into consideration prices of the products of the competing firms before fixing the price. In case of cut-throat competition prices are required to be kept low.

Discussion

No Comment Found

Related InterviewSolutions

A plant is kept in a dark cupboard for about 48 hours before conducting any experiment on photosynthesis to :(A) Remove starch from the plant. (B) Ensure that starch is not translocated from the leaves. (C) Remove chlorophyll from the leaf of the plant. (D) Remove starch from the experimental leaf.
The producer of Lime Fresh’ tea introduces ‘Buy one Get one’ scheme on all the products of ‘Lime Fresh’. Identify the promotional strategy’ used by the producer. State any one objective that could be met by this strategy.
A stringed musical instrument, such as the sitar,is provided with a number of wires of different thicknesses. explain the reason for this.
Mention whether the following would result in inflow, outflow or no flow of cash :(i) Issue of fully paid Bonus Shares (ii) Cash withdrawn from Bank
State with reason whether the following would result in inflow, outflow or no flow of cash :(i) Charging depreciation on furniture. (ii) Cash withdrawn for bank for office use.
Give four points of anatomical differences between a monocot stem and a dicot stem.
State the conditions required for total internal reflection of light to take place.
State the conditions required for total internal reflection of light to take place.
(i) When does a ray of light falling on a lens pass through it undeviated ? (ii) Which lens can produce a real and inverted image of an object ?
When acoustic resonance takes place a loud sound is heard. Why does this happen ? Explain.