Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

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Quizplus · Accepted Answer

Cost-plus percentage-of-cost pricing involves adding a fixed percentage to the total unit cost of a product or service. This method is commonly used because it ensures that all costs associated with producing the product or service are covered, and it allows for a fair profit margin to be added on top of the costs. Cost-plus fixed-fee pricing and experience curve pricing are not the same as cost-plus percentage-of-cost pricing. Target pricing and target return on investment pricing involve setting prices based on external factors such as competition and desired profits, rather than solely on the costs associated with production.

Setting the Price of a Product or Service by Adding