Lawyers,accountants,and other professionals typically price by adding a standard markup for profit.This is known as ________.

Question

Quizplus · Accepted Answer

Cost-plus pricing is a commonly used pricing strategy where a standard markup (percentage) is added to the cost of the product or service to determine the final selling price. This is often used by professionals such as lawyers and accountants who add a markup for profit on their services. Target costing involves determining the cost that is necessary to sell a product at a specific price point, value pricing involves setting a price based on the perceived value of the product or service, break-even pricing involves setting a price to cover all costs and achieve a desired profit margin, and penetration pricing involves setting a low price initially to gain market share.

Lawyers,accountants,and Other Professionals Typically Price by Adding a Standard Markup