Question

Markup pricing is also called as ______.

पर्याय

• Cost pricing

• Marginal priced

• Cost plus pricing

• Cost based pricing

Answer 1

Markup pricing is also called as cost plus pricing.

Explanation:

The basic idea underlying this approach is that a product’s selling price must cover its full cost and yield a reasonable margin of profit. The margin may be a fixed amount per unit or a percentage of cost. The margin is known as 'markup', and, therefore, cost plus pricing is also known as ‘markup pricing’.