Which of the following is an advantage of using cost-based pricing methods?
A) They consider external factors such as competition.
B) They include consideration of the effects of demand.
C) They are relatively simple to calculate.
D) They simplify the process of accurately estimating cost.
E) They take the product life cycle into consideration.

Question

Quizplus · Accepted Answer

Cost-based pricing methods are relatively simple to calculate as they only require determining the total cost of producing and delivering the product, and adding a desired profit margin to that cost.

Which of the Following Is an Advantage of Using Cost-Based