Advertisements
Advertisements
Question
Markup pricing is also called as ______.
Options
Cost pricing
Marginal priced
Cost plus pricing
Cost based pricing
Advertisements
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'.
APPEARS IN
RELATED QUESTIONS
Explain the below mentioned pricing strategy:
Skimming pricing strategy
The strategy of introducing new product in existing market is classified as ______.
Under this Pricing Strategy, a business firm adjusts its own price policy in accordance with general pricing structure in the industry.
Parity pricing is not relevant under the present marketing conditions. Justify either for or against by giving two reasons.
What is parity pricing?
"Competition based pricing is ideal for non-branded products." Comment.
State two disadvantages of Cost plus pricing policy.
Identify two desirable conditions under penetrating pricing.
What pricing strategy will be used to launch shampoo?
What are various strategies used for pricing a product?
