Cost-plus pricing allows firms to receive consumer orders, produce items, and derive prices after total costs are known.

Question

Quizplus · Accepted Answer

Cost-plus pricing involves calculating the total costs incurred in producing a product or delivering a service and then adding a markup percentage to determine the selling price. This method allows firms to cover their costs and ensure a profit margin, making it possible to derive prices after the total costs are known.

Cost-Plus Pricing Allows Firms to Receive Consumer Orders, Produce Items