Which pricing method begins by calculating total costs and then adding a desired percentage profit margin?
Correct answer: C. Cost-plus pricing
- A. Value-based pricing
- B. Competition-based pricing
- C. Cost-plus pricing
- D. Psychological pricing
Explanation
Cost-plus pricing sets the selling price by adding a markup to the product's cost. Value-based pricing starts with customer perceptions, whereas competition-based pricing starts with rivals' prices.
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