Which statement about cost-based pricing is most accurate?

Question

Quizplus · Accepted Answer

Cost-based pricing involves determining the per-unit cost of the product and adding a fixed margin to arrive at the final price. This approach is widely used in many industries and is popular because it ensures that all costs are covered and a profit margin is included.

B, C, and D are not accurate. B is incorrect because variable costs may not be stable and can change over time. C is incorrect because cost-based pricing and demand-based pricing use different approaches to setting prices. D is incorrect because cost-based pricing is commonly used in the real world.

Which Statement About Cost-Based Pricing Is Most Accurate