Product costing technique in which markup component is added into cost base, to set a target price is known as

 

Product costing technique in which markup component is added into cost base, to set a target price is known as

a. market based approach
b. cost incurrence pricing
c. cost plus pricing
d. locked-in cost pricing

To answer this question, you must understand each answer choice in the multiple-choice above. So you will find the right answer.

A. market based approach

Wrong. Because market based approach is a bad choice for an answer.

B. cost incurrence pricing

Wrong answer Again, because cost incurrence pricing is a nonsensical answer. do not choose this answer.

C. cost plus pricing

it is True, because cost plus pricing is the best and correct answer to the above question. so, choose this answer.

D. locked-in cost pricing

This is also wrong, locked-in cost pricing Not completely the correct answer.

The Answer From Product costing technique in which markup component is added into cost base, to set a target price is known as

So the correct answer is C i.e. cost plus pricing. Hopefully, it can help work on your problem and can add to your insight as well.