Cost-plus pricing implies that the cost of the seller's operational inefficiencies should be borne by the customer.

Question

Quizplus · Accepted Answer

Cost-plus pricing includes adding a markup on top of the cost of production to determine the selling price. This markup is intended to cover not only the direct cost of production but also the overhead and operational inefficiencies of the seller. Therefore, these costs are indirectly passed on to the customer through the pricing model.

Cost-Plus Pricing Implies That the Cost of the Seller's Operational