The most common cost-based approach to pricing is ________.
A)demand-based pricing
B)cost-plus pricing
C)price discrimination
D)skimming
E)psychological pricing

Question

Quizplus · Accepted Answer

The most common cost-based approach to pricing is cost-plus pricing, which involves adding a markup to the cost of producing a product or delivering a service. This markup is designed to cover the company's overhead, labor, and profit margins. While other pricing strategies, such as demand-based pricing or price discrimination, may take into account external factors such as customer demand or market competition, cost-plus pricing focuses solely on the internal factors of a business's costs and desired profit margins.

The Most Common Cost-Based Approach to Pricing Is ________