Which statement below is the most correct about the cost-plus approach to pricing?
A) There is considerable pressure to get rid of unnecessary costs.
B) There is a risk that product developers will create products with expensive features that customers may not pay for.
C) The cost of the product is determined by working backwards from the projected selling price.
D) If the projected selling price is greater than 125% of the projected cost,the product will not be offered to customers.

Question

Quizplus · Accepted Answer

The cost-plus approach to pricing involves adding a markup to the cost of producing a product. This can lead to a risk where product developers might include expensive features that increase costs, assuming they can simply add these costs to the selling price, without considering if customers are willing to pay for these features.

Which Statement Below Is the Most Correct About the Cost-Plus