What type of pricing is the most popular method of fixed margin pricing?

Question

Quizplus · Accepted Answer

Fixed margin pricing is based on adding a fixed margin to the cost of a product or service. This method of pricing is commonly known as cost-based pricing, where the cost of production, operating expenses, and other costs are calculated, and the margin is added to determine the final price. This method ensures that the company covers its costs and makes a profit. Therefore, option B, cost-based pricing is the most popular method of fixed margin pricing.

What Type of Pricing Is the Most Popular Method of Fixed