Cost-plus pricing ________.
A) is a complex pricing method
B) involves pricing that accurately reflects production costs
C) involves adding a standard markup for profit
D) aims at breaking even on the costs of making and marketing a product
E) is a value-based pricing method

Question

Quizplus · Accepted Answer

Cost-plus pricing involves adding a standard markup for profit to the production costs. It is a relatively simple pricing method that ensures that the seller recovers all of their costs and makes a profit by adding a predetermined percentage to the cost of producing the product.

Cost-Plus Pricing ________