The company designs what it considers to be a good product,totals the expenses of making the product,and sets a price that adds a standard markup to the cost of the product.This approach to pricing is called ________ pricing.
A)value-based
B)fixed cost
C)cost-plus
D)cost-based
E)skimming

Question

Quizplus · Accepted Answer

The approach described is cost-plus pricing, where the company calculates the cost of making the product and then adds a standard markup to determine the selling price. This differs from value-based pricing, which focuses on what the customer is willing to pay, and skimming pricing, which sets a high initial price for a new product. Fixed cost and cost-based are not accurate descriptions of this approach to pricing.

The Company Designs What It Considers to Be a Good