The practice of a firm taking its cost and attaching a certain margin to arrive at the final price is known as
A) cost-plus pricing.
B) target costing.
C) value-based pricing.
D) price skimming.
E) price penetration.

Question

Quizplus · Accepted Answer

The practice of a firm taking its cost and adding a certain margin to determine the final price is called cost-plus pricing. The margin is meant to cover the firm's overhead costs and provide a profit.

The Practice of a Firm Taking Its Cost and Attaching