‘Price Pool’ is formed to:

Increase prices only
Decrease prices only
Determine a price policy
Determine a sales policy

The correct answer is: C. Determine a price policy.

A price pool is a mechanism used by companies to set prices for their products or services. The price pool is typically made up of representatives from different departments within the company, such as sales, marketing, and finance. The goal of the price pool is to come up with a price that is fair to both the company and its customers.

There are a few different ways to determine a price pool. One way is to use a cost-plus pricing method. This method involves adding a markup to the cost of the product or service to determine the selling price. Another way to determine a price pool is to use a market-based pricing method. This method involves looking at the prices of similar products or services in the market and setting a price that is competitive.

The price pool is an important part of the pricing process. It helps to ensure that the company is setting prices that are fair to both the company and its customers.

Here is a brief explanation of each option:

  • A. Increase prices only. This is not the purpose of a price pool. A price pool is not designed to increase prices only. It is designed to determine a price policy that is fair to both the company and its customers.
  • B. Decrease prices only. This is also not the purpose of a price pool. A price pool is not designed to decrease prices only. It is designed to determine a price policy that is fair to both the company and its customers.
  • C. Determine a price policy. This is the correct answer. A price pool is designed to determine a price policy that is fair to both the company and its customers.
  • D. Determine a sales policy. This is not the purpose of a price pool. A price pool is not designed to determine a sales policy. It is designed to determine a price policy that is fair to both the company and its customers.