Which of the following is not used in the calculation of cost-based pricing?
A)Expected Sales
B)Fixed Costs
C)Mark Up
D)Discounts

Question

Quizplus · Accepted Answer

Discounts are not used in the calculation of cost-based pricing. Cost-based pricing relies on determining the overall cost of producing a product or service and adding a markup to it in order to determine the selling price. Expected sales, fixed costs, and markup are all important factors in this calculation. Discounts are applied after the selling price has been determined and are used to incentivize customers to make a purchase.

Which of the Following Is Not Used in the Calculation