Cost Plus Pricing Formula Download
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Starting with a cost and adding a markup is the definition of cost plus pricing. If a company uses a cost-plus approach to pricing, it will find: AACSB:. Cost-plus pricing - set the price at the production cost plus a certain profit margin. Cost-plus pricers believe in understanding the cost of making a product and then adding a profit margin on top of the cost to arrive at the price of the product. Variable cost-plus pricing is a pricing method in which the selling price is established by adding a markup to total variable costs.