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Question
Markup pricing is also called as ______.
Options
Cost pricing
Marginal priced
Cost plus pricing
Cost based pricing
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Solution
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’.
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