Cost-based pricing gives an indication of which of the following?
A)The maximum price that can be extracted from customers
B)The minimum price that needs to be charged to break even
C)The costs involved in the production
D)The costs involved in the production, marketing and distribution of a product

Question

Quizplus · Accepted Answer

Cost-based pricing is a pricing method that involves adding a markup to the direct and indirect costs of producing a product to arrive at a selling price that covers the cost of production and generates a profit. Therefore, the minimum price that needs to be charged to break even is the main indication provided by cost-based pricing.

Cost-Based Pricing Gives an Indication of Which of the Following