Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. This exemplifies ________.
A) target pricing
B) cost-plus pricing
C) value-based pricing
D) break-even pricing
E) penetration pricing

Question

Quizplus · Accepted Answer

Cost-plus pricing involves adding a markup to the cost of producing a product or providing a service to determine its selling price. This is commonly used by professionals like lawyers and accountants, who charge clients based on their hourly rates and add a markup for profit. Target pricing is when a company determines the price based on what the market is willing to pay, while value-based pricing involves setting a price based on the perceived value of the product or service to the customer. Break-even pricing is when a company sets a price that covers its costs and expenses, and penetration pricing involves setting a low price initially to gain market share.

Lawyers, Accountants, and Other Professionals Typically Price by Adding a Standard