Setting the Price of a Product or Service by Adding

question 131

Multiple Choice

Setting the price of a product or service by adding a fixed percentage to the total unit cost is referred to as

• A)cost-plus fixed-fee pricing.
• B)target pricing.
• C)cost-plus percentage-of-cost pricing.
• D)experience curve pricing.
• E)target return on investment pricing.

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Definitions:

Merchant Wholesalers

Businesses that buy goods in bulk from manufacturers and sell them, usually in smaller quantities, to retailers or other businesses, but not directly to consumers.

Agents and Brokers

Intermediaries who facilitate the buying and selling process in various markets, often dealing in real estate, insurance, or securities.

Title to Merchandise

The legal right of ownership of goods, indicating that the holder has the right to control the use and disposition of the items.

Broker

An individual or firm that acts as an intermediary between buyers and sellers, typically earning a commission for facilitating transactions.