The company designs what it considers to be a good product,totals the expenses of making the product,and sets a price that adds a standard markup to the cost of the product.This approach to pricing is called ________.
A) value-based pricing
B) fixed cost pricing
C) cost-plus pricing
D) variable pricing
E) skimming pricing

Question

Quizplus · Accepted Answer

This approach to pricing is called cost-plus pricing, where the company calculates the total cost of producing its product and adds a markup to determine the final price. The other options such as value-based pricing, skimming pricing, fixed cost pricing, and variable pricing are different approaches to pricing strategies.

The Company Designs What It Considers to Be a Good