For custom-made equipment or commercial construction projects, which pricing method is most likely used?
A)Reference
B)Premium
C)Differential
D)Return on investment
E)Cost-plus

Question

Quizplus · Accepted Answer

For custom-made equipment or commercial construction projects, the cost-plus pricing method is most likely used. This method involves taking the actual cost of producing the product or completing the project and adding a markup to determine the final selling price. This approach is often used in situations where the costs of production or construction are uncertain, as it ensures that the company can earn a profit while also covering its expenses. It is also commonly used for government contracts and other projects where the cost of materials and labor must be closely monitored.

For Custom-Made Equipment or Commercial Construction Projects, Which Pricing Method