The only real difference among the multitude of cost-plus pricing techniques is the relative sophistication of the costing procedures employed.

Question

Quizplus · Accepted Answer

This statement is true. The basic concept behind cost-plus pricing is to add a markup or profit margin on top of the cost of producing a good or service. The different variations of cost-plus pricing typically differ in the complexity of the cost accounting methods used to determine the "cost" component of the pricing formula.

The Only Real Difference Among the Multitude of Cost-Plus Pricing