When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using ____ pricing.
A) markup
B) demand-based
C) differential
D) cost-plus
E) expense-based

Question

Quizplus · Accepted Answer

Cost-plus pricing involves adding a markup to the cost of producing a product to determine the selling price. Therefore, the seller's costs are determined first, and then a specified percentage or dollar amount is added to establish the price.

When a Seller's Costs Are Usually Determined During or After