Stefan has worked in the restaurant industry for over 20 years and recently signed a lease and plans to open his own restaurant in the next several months.He's working with his chef and bar manager to determine menu items and pricing.Of course,his pricing must be competitive as well as enable the business to cover costs and earn a profit.He decides that he will utilize a 60% mark-up on costs and informs the chef and bar manager to utilize this basis when determining prices for menu items.What method of pricing is Stefan utilizing?
A)cost-plus pricing
B)full-cost pricing
C)incremental-cost pricing
D)value-add pricing

Question

Stefan has worked in the restaurant industry for over 20 years and recently signed a lease and plans to open his own restaurant in the next several months.He's working with his chef and bar manager to determine menu items and pricing.Of course,his pricing must be competitive as well as enable the business to cover costs and earn a profit.He decides that he will utilize a 60% mark-up on costs and informs the chef and bar manager to utilize this basis when determining prices for menu items.What method of pricing is Stefan utilizing?​
A)​cost-plus pricing
B)​full-cost pricing
C)​incremental-cost pricing
D)​value-add pricing

Quizplus · Accepted Answer

Stefan is utilizing the cost-plus pricing method by applying a 60% mark-up on costs to determine the prices for menu items. This method involves adding a certain percentage or amount of profit to the cost of the goods or services to determine the final selling price.

Stefan Has Worked in the Restaurant Industry for Over 20