What should be considered while pricing a handicraft product?
Answer and explanation
Correct answer: Cost of raw materials, labour cost and reasonable profit
While pricing a handicraft product, the cost of raw materials, the artisan's labour cost, and a reasonable profit should be included. This ensures that the price recovers the cost and provides fair earnings to the seller. Factors such as the customer's age may be useful in marketing, but cannot alone determine the price. Exam tip: remember pricing as cost + labour + profit.
Frequently asked questions
What is the correct answer to this question?
Cost of raw materials, labour cost and reasonable profit
Why is this the correct answer?
While pricing a handicraft product, the cost of raw materials, the artisan's labour cost, and a reasonable profit should be included. This ensures that the price recovers the cost and provides fair earnings to the seller. Factors such as the customer's age may be useful in marketing, but cannot alone determine the price. Exam tip: remember pricing as cost + labour + profit.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Traditional occupations in India - Handicrafts.
