The most elementary pricing method is to add a standard ________ to the product's cost.
A) target-return
B) target margin
C) target price
D) markup
E) margin

Question

Quizplus · Accepted Answer

Markup is the most elementary pricing method in which a fixed percentage is added to the product's cost to determine the selling price. This method is easy to calculate and commonly used in retail and wholesale businesses. Target-return pricing involves setting the price based on a desired profit or return on investment, while target margin pricing sets the price based on achieving a certain profit margin percentage. Target price pricing involves setting the price based on what the market is willing to pay, while margin pricing involves setting the price based on the product's production cost and desired profit margin.

The Most Elementary Pricing Method Is to Add a Standard