The __________ method focuses on setting prices by fixing a profit margin over established product costs and thus ensures a more stable, predictable profit.
A) market-based
B) cost-based
C) skimming
D) penetration
E) centralized

Question

Quizplus · Accepted Answer

The cost-based pricing method involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. This method ensures a stable and predictable profit by adding a fixed profit margin over the total costs.

The __________ Method Focuses on Setting Prices by Fixing a Profit