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27 April, 18:27

The pricing strategy that begins with the determination of a price at which a product will sell and then focuses on developing a cost structure for the product that will yield a profit is known as:

a. cost-plus pricing.

b. prestige pricing.

c. Developmental pricing

d. target costing.

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  1. 27 April, 18:38
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    The correct answer is letter "A": cost-plus pricing.

    Explanation:

    Cost-plus pricing is a strategy to determine the price of a product based on adding the costs of production (raw materials, direct labor, and overhead) so then a percentage of the total costs will be added representing the profit of the company. The total value will be the price consumers will have to pay for the product. Cost-plus pricing is also called markup pricing.
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