The practice of adding a percentage of specified dollar amount-or markup-to the base cost of a product to cover unassigned costs and to provide a profit is called _____ pricing.
A)full-cost
B)breakeven
C)incremental-cost
D)cost-plus

Question

Quizplus · Accepted Answer

Cost-plus pricing is the practice of adding a percentage of specified dollar amount, or markup, to the base cost of a product to cover unassigned costs and to provide a profit. This method ensures that all costs are covered and that a profit margin is incorporated into the pricing strategy.

The Practice of Adding a Percentage of Specified Dollar Amount-Or