The method of export pricing which considers the direct, out-of-pocket expenses of producing and selling products for export as a floor beneath which prices cannot be set without incurring a loss is known as the cost-plus method.

Question

Quizplus · Accepted Answer

The method described is known as the marginal cost pricing method, not the cost-plus method. The cost-plus method involves adding a markup to the total cost to ensure a profit.

The Method of Export Pricing Which Considers the Direct, Out-Of-Pocket