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 mark-up to the cost of the product.This approach to pricing is called ________ pricing.
A)value-based
B)fixed cost
C)cost-plus
D)variable
E)skimming

Question

Quizplus · Accepted Answer

The approach described in the question is cost-plus pricing, where the cost of producing a product is calculated and a markup is added to this cost to determine the final price. Choices A (value-based pricing) and E (skimming pricing) do not involve solely considering the cost of producing the product. Fixed cost pricing and variable pricing are pricing approaches based on different cost structures and are not applicable here.

The Company Designs What It Considers to Be a Good