Which of the following best explains cost-based pricing?
A) A particular profit margin is added to some costs, including the cost of sales.
B) A particular profit margin is added to all costs, including the cost of sales.
C) A particular profit margin is added to the cost of sales.
D) A 5% profit margin is added to the cost of sales.

Question

Which of the following best explains cost-based pricing? 
A) A particular profit margin is added to some costs, including the cost of sales. 
B) A particular profit margin is added to all costs, including the cost of sales. 
C) A particular profit margin is added to the cost of sales. 
D) A 5% profit margin is added to the cost of sales.

Quizplus · Accepted Answer

Cost-based pricing involves adding a specific profit margin to all costs associated with a product or service, including the cost of sales, to determine its selling price. This method ensures that all costs are covered and a profit is made.

Which of the Following Best Explains Cost-Based Pricing