Which of the following statements about costbased pricing is most accurate?
A) It determines price by adding a fixed margin to the per unit cost of the product.
B) It determines the price based on the amount consumers are willing to pay for a product.
C) It is an interesting theoretical approach to pricing, but it is seldom used in the real world.
D) It is popular among marketers, because the stability of variable costs makes it simple to apply.

Question

Which of the following statements about cost­based pricing is most accurate?
A) It determines price by adding a fixed margin to the per unit cost of the product.
B) It determines the price based on the amount consumers are willing to pay for a product.
C) It is an interesting theoretical approach to pricing, but it is seldom used in the real world.
D) It is popular among marketers, because the stability of variable costs makes it simple to apply.

Quizplus · Accepted Answer

Cost-based pricing determines price by adding a fixed margin to the per unit cost of the product. This method is commonly used by businesses to ensure that they are able to cover their costs and make a profit. While other factors such as the amount consumers are willing to pay may also be taken into account, the underlying principle is based on the cost of production.

Which of the Following Statements About Cost­based Pricing Is Most

Which of the Following Statements About Costbased Pricing Is Most