If a company uses a cost-plus approach to pricing, it will find that there are several different definitions of cost and the higher the cost, the higher the markup percentage.

Question

Quizplus · Accepted Answer

In a cost-plus approach, the markup percentage is typically predetermined and does not vary with the cost. The approach adds a fixed percentage to the total cost to determine the selling price, regardless of the cost definition or level.

If a Company Uses a Cost-Plus Approach to Pricing, It