Cost-plus pricing refers to
A) summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price.
B) setting the price of a line of products at a number of different price points.
C) adding a fixed percentage to the cost of all items in a specific product class.
D) setting prices to achieve a profit that is a specified percentage of the sales volume.
E) increasing the price slightly to protect against undue profit losses from unforeseen environmental factors.

Question

Quizplus · Accepted Answer

Cost-plus pricing involves adding a specific amount to the total unit cost of providing a product or service to arrive at the final price. This amount added is usually a markup to ensure a profit margin for the business.

Cost-Plus Pricing Refers to