For which of the following products is a producer most likely to use cost-plus pricing?
A)A landscaping project of a five-acre public park
B)A jar of peanut butter
C)A first edition novel that is valued at $125
D)A state-of-the-art home entertainment system

Question

Quizplus · Accepted Answer

Cost-plus pricing is most suitable for customized or unique projects where the costs can be accurately estimated and a markup can be added on top. A landscaping project of a five-acre public park fits this description, as it would involve specific costs that can be calculated and then marked up to determine a final price.

For Which of the Following Products Is a Producer Most