_____ pricing is the most popular method of fixed margin pricing.
A) Skimming
B) Costbased
C) Demandbased
D) Breakeven

Question

_____ pricing is the most popular method of fixed margin pricing.
A) Skimming
B) Cost­based
C) Demand­based
D) Breakeven

Quizplus · Accepted Answer

Cost-based pricing is the most common method of fixed margin pricing as it involves calculating the total cost of producing a product or service and then adding a markup or profit margin to determine the selling price. This method ensures that all costs are covered and a reasonable profit is made. Skimming pricing is used for new and innovative products, demand-based pricing is based on what customers are willing to pay, and breakeven pricing is used to calculate the minimum price needed to cover costs.

_____ Pricing Is the Most Popular Method of Fixed Margin