When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for,which type of pricing is the seller using?
A)profit maximization
B)demand oriented
C)target return
D)markup

Question

Quizplus · Accepted Answer

The seller is determining the selling price by adding a markup to the cost. This is a common method of cost-plus pricing, where the cost of the product is determined first and then a certain percentage or amount is added as markup to cover profit and additional expenses. This method is suitable for businesses that have a good idea of their costs and want to ensure they make a profit on each sale.

When a Seller Determines the Selling Price by Adding to Cost