Setting prices by calculating all the costs then adding on the profit margin is called:
A) Cost-plus pricing.
B) Profit-based pricing.
C) Calculation pricing.

Question

Quizplus · Accepted Answer

Cost-plus pricing involves adding a markup to the cost of goods to ensure a profit margin. It's a straightforward method where the total cost of producing a product or service is calculated, and then a profit margin is added on top to set the final price.

Setting Prices by Calculating All the Costs Then Adding on the Profit