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What the traffic can bear pricing
Pricing based on what the traffic can bear is not a sophisticated method. It is used by retail traders as well as by some manufacturing firms. This method brings high profit in the short term. But what the traffic can bear is not a safe concept. Chances of errors in judgment are very high. Also, it involves trial and error. It can be used where monopoly oligopoly condition exists and demand is relatively inelastic to prices. Buyer opposition or consumerism is bound to set in course of time when a firm sets its prices on the basis of what the traffic can bear.
What does it mean when we say consistency is the central feature of economic rationality?
companyXYZusesthe job oder costing system.
X ltd. has a current ratio of 4.5:1 and acid test ratio of 3:1. If its inventory is Rs. 24000, find out its current liabilities.
#labour costing techniques
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