Paper 1 · The Marketing Mix
Which factor most directly influences an enterprise's pricing decision?
Athe depreciation method used for assets
Bthe location of the company's head office
Cthe cost of production and competitors' prices
Dthe number of shifts worked in the factory each week
Explanation: Price has a floor and a ceiling. The floor is cost, since a price below it loses money on every sale, and the ceiling is what rivals charge and what customers will pay. Everything else, including how assets are depreciated, is secondary to those two.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Nov 2018, Q10