Answer:
A. cutting cost to break even with charges and d. setting cost equal to charges
Explanation:
price-driven costing is a costing system where the company will carry out reseach and determine the worth of product from the customers and design product in order that the cost will not exceed the charges.
Answer:
b. cutting costs to break even with charges
Explanation:
Cost driven pricing can be seen as the way in which companies or business owners try to check and assess what it actually cost to produce or manufacture their product in order to add on some margin for profit.
Many businesses first assess what it costs to produce their products and then add on some margin for profit. It also enable them to think strategically about how to produce quality product thereby coming to the final selling price of the product.
Which is why organisation, companies or
business owners uses cutting costs to break even with charges because it teaches or help them on how to use fixed costs and variable costs to find the best price for their products or services.
