Which pricing method breaks down charges into major component parts?

The correct answer is itemized pricing, as this method is specifically designed to break down charges into major component parts. Itemized pricing allows consumers to see a detailed listing of the various services and products included in the overall cost. This transparency is beneficial for clients because it clarifies what they are paying for, allowing them to understand the individual costs associated with each part of the service or product.

For instance, in the context of funeral services, itemized pricing could include separate line items for services such as the use of facilities, transportation, embalming, and merchandise, like caskets or urns. Clients appreciate having a clear view of what they are being charged for, enabling them to make informed decisions based on their budget and needs.

In contrast, other pricing methods, such as competitive pricing, flat rate pricing, and functional pricing, do not provide this level of detail. Competitive pricing focuses on setting prices based on competitors, flat rate pricing offers a singular price for a group of services, and functional pricing may group charges by service categories rather than itemizing each component.