Question

Which of the following pricing strategies includes expenses tied to a product and a predetermined amount of profit?

A) Cost-plus pricing.
B) Value-based pricing.
C) Penetration pricing.
D) Competitive pricing.

Answer 1

Cost-plus pricing is the pricing strategy that includes expenses tied to a product and a predetermined amount of profit.

Step-by-step explanation:

The correct answer is Cost-plus pricing. Cost-plus pricing is a pricing strategy that includes expenses tied to a product and a predetermined amount of profit. In this strategy, the company calculates the total cost of producing the product and then adds a markup to cover the desired profit margin. This strategy ensures that all costs are covered and that a profit is made for each unit sold.