contestada

Which of the following is not a method commonly used in applying the cost-plus approach to product pricing?
a.product cost method
b.variable cost method
c.total cost method
d.fixed cost method

Respuesta :

D: fixed cost method is a method that is not commonly used in applying the cost-plus approach to product pricing.

Cost-plus pricing is also referred to as markup pricing. Cost-plus pricing is a pricing method of products where a fixed percentage is added on top of the cost it requires to produce one unit of a product (unit cost). The number resulting from this refers to the selling price of the product. In the cost-plus pricing approach, the seller calculates all costs, variable and fixed, that have been or will be incurred in the production process of the product. The investor then applies a markup percentage to these costs to calculate the asking price.

You can learn more about cost-plus pricing approach at

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