A standard mark- up is added to the cost of producing a product under which of the following approaches to pricing?
A) value- based approach
B) performance- based approach
C) relationship approach
D) competition- based approach
E) cost- based approach

Question

Quizplus · Accepted Answer

A standard mark-up is added to the cost of producing a product under the cost-based approach to pricing, where the cost of production is the primary consideration in setting the price. The company determines the cost of producing a product and then adds a standard mark-up to cover its expenses and profit.

A Standard Mark- Up Is Added to the Cost of Producing