In _____ pricing,a service firm determines price by calculating component costs of the service and adding a mark up.
A) Contingency
B) Fee for service
C) Perceived value
D) Cost-plus
E) Going-rate

Question

Quizplus · Accepted Answer

Cost-plus pricing is a method where a service firm calculates the total cost of producing a service and adds a markup to that cost to determine the selling price. This pricing method ensures that the company covers all of its costs and earns a profit above those costs.

In _____ Pricing,a Service Firm Determines Price by Calculating Component