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Which pricing method adds a standard markup margin to the total cost of producing and distributing the product?

AValue-Based Pricing
BGoing-Rate Pricing
CTarget Return Pricing
DCost-Plus Pricing (Markup Pricing)

Explanation

* Cost-Plus (Markup) Pricing calculates total product cost and adds a standard markup percentage for profit.
* Advantage: Simple to calculate and minimizes price competition if industry-wide markups are standard.
* Disadvantage: Ignores consumer demand and competitor pricing.

Exam Relevance
  • Topic: Pricing Strategy
  • Subtopic: Cost-Based Pricing
Submitted by: mcqstutor Team More Marketing MCQs →

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