In _____, firms set the price of a product by calculating merchandise, service, and overhead costs, then adding a gross margin to cover the profit goal of the organization.
A) cost-based pricing
B) demand-based pricing
C) competition-based
D) combination

Question

Quizplus · Accepted Answer

Cost-based pricing involves setting the price of a product by calculating all costs associated with producing and selling it, then adding a desired profit margin.

In _____, Firms Set the Price of a Product by Calculating