What Is the Difference Between the Cost-Based Pricing Strategy and the Cost-Plus

question 113

Essay

What is the difference between the cost-based pricing strategy and the cost-plus pricing strategy?

---

Definitions:

Balance Sheet

A document that outlines a firm's assets, liabilities, and the equity held by shareholders, as of a certain date.

Stockholders' Equity

The portion of a company's capital that belongs to the shareholders, calculated as total assets minus total liabilities.

Stockholders' Equity

Stockholders' equity represents the ownership interest in a company, calculated as total assets minus total liabilities.

Liabilities

Financial obligations or debts a company owes to others, which must be paid back in the future.