Cost-based pricing involves the calculated product cost plus the desired profit.

Name: Cost-based pricing involves the calculated product cost plus the desired profit.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Cost-based pricing is a pricing strategy where the price of a product is determined by adding a markup, or desired profit, to the total cost of producing the product. This markup can be a percentage or a fixed amount, but the basic formula for cost-based pricing is: price = cost + markup.

Cost-Based Pricing Involves the Calculated Product Cost Plus the Desired