Otis Fennell Limited sets prices for its goods as follows: direct costs incurred plus a profit mark up.Which of the following describes this system of price setting?

Question

Quizplus · Accepted Answer

Variable cost-based pricing involves setting prices based on the direct costs incurred in producing a product plus a profit markup, which matches the description given for Otis Fennell Limited's pricing strategy.

Otis Fennell Limited Sets Prices for Its Goods as Follows