Which of the following statements is true of cost-based pricing?
A) It determines the price by adding a fixed margin to the per-unit cost of a product.
B) It determines the price based on the amount consumers are willing to pay for a product.
C) It is seldom used in the real world.
D) It is more market-focused than demand-based pricing.

Question

Quizplus · Accepted Answer

Cost-based pricing involves setting the price of a product by adding a fixed margin to the per-unit cost, ensuring that all costs are covered and a profit margin is achieved.

Which of the Following Statements Is True of Cost-Based Pricing