When it is difficult or impossible to determine the costs of the product until it has been made or completed, the pricing approach used is known as:
A) markup.
B) break even.
C) cost-plus.
D) percentage of cost.

Question

Quizplus · Accepted Answer

describe the principles of pricing based on cost and revenue analysis. Cost-plus pricing is often used when it is difficult or impossible to determine the costs of the product until it has been made or completed.

When It Is Difficult or Impossible to Determine the Costs