The cost of producing or buying the product—plus making a profit—i

QUESTION

The cost of producing or buying the product—plus making a profit—is the primary basis for setting price in this pricing strategy.

A) competitive pricing
B) target costing
C) cost pricing
D) price skimming
E) penetration pricing

ANSWER

Answer: C
Explanation: C) Some companies favor cost pricing, in which the cost of producing or buying the product—plus making a profit—is the primary basis for setting price.