________ establishes a price based on the cost to manufacture a product or deliver a service.
A) Value-based pricing
B) Fixed cost pricing
C) Cost-based pricing
D) A skimming price
E) Price bundling

Question

Quizplus · Accepted Answer

Cost-based pricing is a method of pricing where the price of a product or service is established based on the cost to manufacture the product or deliver the service. This includes both variable costs (such as materials) and fixed costs (such as rent and salaries). The price is then set to ensure that the cost of production and delivery is covered, and a profit margin is added on top.

________ Establishes a Price Based on the Cost to Manufacture