Q.Match the pricing methods in List – I with their explanation in List–II : List–I List–II I. Imitative pricing A. Based on relationship of net profit to capital investment. II. Discount pricing B. Prices are set by following those of most successful establishment in same class of food services. III. Cost plus pricing C. Practice of charging the customer less than the declared rates on product menus. IV. Rate of return D. Food cost per unit of pricing sales in calculated and given percentage is added to food cost. Codes : I II III IV
Correct answer: B C D A
Explanation
Correct Match I) Imitative pricing – Prices are set by following those of most successful establishment in same class of food services. II) Discount pricing– Practice of charging the customer less than declared rates on product menus. III) Cost plus pricing – Food cost per unit of sales is calculated and a given percentage is added to the food cost. IV) Rate of return – Based on relationship of pricing net profit to capital investment.
Correct Match I) Imitative pricing – Prices are set by following those of most successful establishment in same class of food services. II) Discount pricing– Practice of charging the customer less than declared rates on product menus. III) Cost plus pricing – Food cost per unit of sales is calculated and a given percentage is added to the food cost. IV) Rate of return – Based on relationship of pricing net profit to capital investment.