Author Question: Michael is opening a tire store. He intends to set the price of tires based on determining the total ... (Read 87 times)

dollx · **on:** Jul 14, 2018

Michael is opening a tire store. He intends to set the price of tires based on determining the total cost of his purchase of one tire and then adding an amount to cover additional costs and profits. Michael is using ___ pricing.
A) cost-based
B) additional markup
C) floor establishment
D) survival

Question 2

What is the purpose of quality control? Why is it important to a firm?

onowka · **Reply #1 on:** Jul 14, 2018

Answer to Question 1

A

Answer to Question 2

The purpose of quality control is to ensure that goods and services are produced in accordance with design specifications. The primary objective is to see that the organization lives up to the standards it has set for itself on quality. For many firms, their reputation is one of quality, so strict quality control is essential. Other firms adopt a strategy of emphasizing lower prices along with reasonable (but not particularly high) quality.