A definition of the term "cost-plus pricing" is presented. It refers to a standard markup added to the cost of a product or service to establish a selling price. It is stated that many companies simply add a percentage of production costs to arrive at a selling price. It is also ...
As with market pricing, transfer prices can be determined through a variety of methods, including cost-based or profit-seeking pricing models. Variable cost transfer pricing refers to a price where the purchaser pays the variable costs of production, without a markup.Article Sources Related Terms P...
In this paper, it is examined one pricing practice often used by oligopolistic firm: cost-plus pricing. Cost-plus pricing refers to the setting of a price equal to average variable cost plus a markup. The pricing of airline tickets illustrates this concept presented in this paper as it is ...