________ pricing involves setting prices based on the expenses involved in producing, distributing, and selling a product plus a fair rate of return for a company's effort and risk.
A) Competition-based
B) Value-added
C) Cost-based
D) Good-value
E) Demand-based

Question

Quizplus · Accepted Answer

Cost-based pricing involves determining the total expenses of producing and selling a product and then adding a fair profit margin to arrive at the final price. This method is particularly useful for companies that have stable or predictable costs and prices, and it can help them maintain profitability while also remaining competitive in the market.

________ Pricing Involves Setting Prices Based on the Expenses Involved