Which of the following best explains market-based pricing?
A) A particular profit margin is added to some costs, including the cost of sales.
B) The price of the product is determined by the market and is generated exclusively by market circumstances.
C) A fixed percentage mark-up is added to the cost price.
D) A 5% profit margin is added to the cost of sales.

Question

Which of the following best explains market-based pricing? 
A) A particular profit margin is added to some costs, including the cost of sales. 
B) The price of the product is determined by the market and is generated exclusively by market circumstances. 
C) A fixed percentage mark-up is added to the cost price. 
D) A 5% profit margin is added to the cost of sales.

Quizplus · Accepted Answer

Market-based pricing refers to the process of pricing a product based on the prevailing market conditions, i.e., supply and demand. The price is not determined by costs or profit margins but solely by market circumstances.

Which of the Following Best Explains Market-Based Pricing