When a company uses cost-plus pricing, they consider both the costs of production and the desired profit.
A. True
B. False

Question

05-09-2022
Business

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When a company uses cost-plus pricing, they consider both the costs of production and the desired profit.
A. True
B. False

Sagot :

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Tundexi Tundexi · Answer 1 · 2022-09-09T05:26:36-04:00

It is a false statement that a company consider both the costs of production and the desired profit when it uses cost-plus pricing.

What is a pricing?

It means the decision-making process that goes into establishing a value for a product or service. Different strategies are used by business when setting prices but they are all a form of pricing. The price that was set during the pricing process is what the customer will pay for that product or service.

The cost-plus pricing, which is called a markup pricing is the pricing method where a fixed percentage is added on top of the cost it takes to produce one unit of a product, hence, the resulting number is the selling price of the product.

Sagot :

What is a pricing?

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