The pricing method that is used primarily by service businesses is
A)return on assets pricing.
B)gross margin pricing.
C)target cost pricing.
D)time and materials pricing.

Question

Quizplus · Accepted Answer

Service businesses typically use time and materials pricing, where the price is based on the amount of time spent providing the service (such as hourly rate) and the cost of materials used. This method allows for more flexibility and accurate pricing based on the actual resources used in providing the service.

The Pricing Method That Is Used Primarily by Service Businesses