BUSINESS ADMINISTRATION
INTERNATIONAL MARKETING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
All export costs are included in the price of a product
|
|
|
Firms look at the price they need to set to be competitive in a foreign market
|
|
|
Only direct costs are considered
|
|
|
Only indirect costs are considered
|
Detailed explanation-1: -Cost plus pricing involves adding a markup to the cost of goods and services to arrive at a selling price. Under this approach, you add together the direct material cost, direct labor cost, and overhead costs for a product, and add to it a markup percentage in order to derive the price of the product.
Detailed explanation-2: -The cost-plus pricing formula is calculated by adding material, labor, and overhead costs and multiplying it by (1 + the markup amount).
Detailed explanation-3: -Cost-plus pricing is a pricing method used by companies to determine the price of a product or service. It involves setting a price by adding a fixed amount or percentage to the cost of a product or service.
Detailed explanation-4: -Cost Plus Pricing is also referred to as Markup Pricing.