The cost-plus pricing approach is generally in the form ________.
A) Cost base + Markup component = Prospective selling price
B) Prospective selling price - Cost base = Markup component
C) Cost base + Gross margin = Prospective selling price
D) Variable cost + Fixed cost + Contribution margin = Prospective selling price

Question

Quizplus · Accepted Answer

The cost-plus pricing approach involves calculating the cost of producing the product or service and then adding a markup component to arrive at the selling price. This is represented by the formula Cost base + Markup component = Prospective selling price, which is best reflected in option A.

The Cost-Plus Pricing Approach Is Generally in the Form ________