In cost-based pricing, the list price is determined by estimating what customers are willing to pay for a product and then backing off a bit to provide a cushion.

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In cost-based pricing, the list price is determined by starting with the cost of producing the product and adding a markup or profit margin to arrive at a selling price. It is not based on estimating what customers are willing to pay.

In Cost-Based Pricing, the List Price Is Determined by Estimating