The most common cost-based approach to pricing is ________.
A)demand-based pricing
B)psychological pricing
C)yield management pricing
D)cost-plus pricing
E)cost-minus pricing

Question

Quizplus · Accepted Answer

Cost-plus pricing is the most common cost-based approach to pricing. In this approach, the company calculates the total cost incurred in producing the product or service and adds a markup (profit margin) to arrive at the selling price. This method ensures that the company covers its costs and earns a profit on each sale.

The Most Common Cost-Based Approach to Pricing Is ________