Heather runs Cute Cakes,a gourmet cupcake bakery.To set prices for her cupcakes,Heather looks at the cost of making each cupcake and then adds an additional amount on top of that to arrive at her price.Heather is demonstrating _____________.

Question

Quizplus · Accepted Answer

Cost-plus pricing is really just a general heuristic that builds a price by adding a standardized markup on top of costs for an offering, hence the term markup on cost.

Heather Runs Cute Cakes,a Gourmet Cupcake Bakery