Multiple choice

The method of pricing the product based on the manufacturer's cost is called as ____

  1. Manufacturer cost based pricing

  2. Cost based pricing

  3. Return based pricing

  4. Cost plus pricing

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cost-plus pricing is a method where the manufacturer calculates the production cost and adds a markup percentage to determine the selling price. This pricing approach is based directly on the manufacturer's cost structure, making it straightforward but not always market-optimized.