Question

The most common method used for pricing is _____________.

• A. Cost plus or full cost pricing
• B. Marginal cost pricing
• C. Going rate pricing
• D. Customary prices

Answer 1

The correct option is A Cost plus or full cost pricing

Cost Plus Pricing is a pricing method that attempts to ensure that costs are covered while providing a minimum acceptable rate of profit for the entrepreneur. It is calculated by adding a fixed mark-up to average cost of production.

Hence the most common method used for pricing is cost plus or full cost pricing.