Adding a Standard Mark-Up to the Cost of the Product

question 150

Short Answer

Adding a standard mark-up to the cost of the product is known as cost-________ pricing.

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Definitions:

Illusory Promise

An agreement that lacks a firm commitment or terms, making it unenforceable by law.

Accord and Satisfaction

A legal settlement where a debtor offers payment or performance different from what was originally agreed, and the creditor accepts it as full settlement of the debt.

UCC

A complete collection of legal regulations that administer all business dealings across the United States, known as the Uniform Commercial Code.

Preexisting Duty

A promise to do something that one is already obligated to do. It is not considered valid consideration.