Pricing of services
A)requires the same approach as pricing of products.
B)uses a markup percentage to add the cost of overhead to the direct costs of labor,materials,and parts.
C)always requires three pricing computations,one for materials,one for parts,and one for labor.
D)is less accurate than pricing of products.

Question

Quizplus · Accepted Answer

Pricing of services usually involves adding the cost of overhead to the direct costs of labor, materials, and parts using a markup percentage. This is different from the pricing of products, which may involve several pricing computations based on different factors such as production costs, demand, and competition. While pricing of services may not always require three separate pricing computations, it does require a similar approach to pricing products in terms of accounting for costs and markup. Pricing of services can be just as accurate as pricing of products if done correctly.

Pricing of Services