1) State with reasons, the method you would adopt to price materials into production.
i.)in a period of rapidly increasing prices of the material,
ii). in a period of rapidly reducing prices of the material.​

Respuesta :

The method you would adopt to price materials into production:

i) In a period of rapidly increasing prices of the material is price penetration

ii). in a period of rapidly reducing prices of the material is price skimming

What is pricing methods?

Pricing Methods are the ways in which the price of goods and services are determined. It is computed from all factors such as the resources and materials used for production.

In a period of rapidly increasing prices of the material you maintain a low price because of competitive market and then raise the price later. It called penetration price

In a period of rapidly reducing prices of the material use price skimming where you maintain your high price of selling and lower it as the market evolves.

Therefore, different pricing strategy works for different period and market season.

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