Cost-plus pricing refers to
A)setting the price of a line of products at a number of different price points.
B)adding a fixed percentage to the cost of all items in a specific product class.
C)summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price.
D)setting prices to achieve a profit that is a specified percentage of the sales volume.
E)increasing the price slightly to protect against undue profit losses from unforeseen environmental factors.

Question

Quizplus · Accepted Answer

Cost-plus pricing involves calculating the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price. This ensures that the business covers its costs and makes a profit. This approach is commonly used in manufacturing and construction industries, where costs of production can be more easily estimated.

Cost-Plus Pricing Refers to