Olivia has calculated the total cost of the product she manages. She has reviewed the company's marketing plan and determined the required level of profit that must be earned on the sale of each item. Olivia is using which pricing method?
A) demand-based pricing
B) backward pricing
C) competition-based pricing
D) cost-based pricing
E) breakeven pricing

Question

Quizplus · Accepted Answer

Cost-based pricing is a pricing method that sets the price of a product based on the cost of producing it. This method is often used when a company has a high level of fixed costs, such as rent or equipment costs.

Olivia Has Calculated the Total Cost of the Product She