What type of pricing breaks down functional costs into various consumer categories?

Functional pricing is a strategy in which costs associated with the various functions of a product or service are categorized and allocated to reflect their different consumer uses. This approach allows businesses, including those in the funeral industry, to provide transparency in pricing by breaking down the expenses involved, such as preparation, transportation, and facility usage. By categorizing these costs, consumers can better understand what they are paying for and how those costs contribute to the overall price of services or products.

This method contrasts with other pricing strategies that may not provide as granular a breakdown of costs. For example, unit pricing typically focuses on the price per unit of a product rather than the functional aspects of the service related to consumer needs. Double seal is a term used in the context of sealing caskets, and grave liner refers to a structure placed in the ground to protect the casket. Neither of these options relates to the concept of pricing and cost breakdown in the way that functional pricing does.