A pricing procedure which places a price on each and every item of service and merchandise is referred to as which method?

• A. Bundling
• B. Itemization
• C. Price averaging
• D. Cost-plus

Answer: (B)

Pricing each item individually is itemization. This approach lists every service and merchandise item with its own price, giving clear, separate values for each component and allowing clients to mix and match as they choose. It promotes transparency and lets families see exactly what they’re paying for rather than paying a single package price.

This differs from bundling, where multiple items are packaged together for one price; price averaging, which would assign a single average price across items; and cost-plus, which bases prices on the cost of producing the item plus a markup. Therefore, the described method is itemization.