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with cost-plus pricing methods, a. sellers are more certain about costs than demand b. when all sellers in a market use cost-plus pricing, prices to consumers will vary widely c. when all sellers in a market use cost-plus pricing, competition will be intense d. variable costs are irrelevant e. fixed costs are irrelevant

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In cost-plus pricing methods, sellers are more convinced of cost than demand. This method is based on the price of the business proposal on the cost of production and desired markup level.

What is cost plus pricing and its use?

  • Cost plus pricing is a very simple pricing strategy that determines how much you charge for an item in addition to its cost. For example, you may decide to sell cakes for 10% more than the cost of ingredients. Then the price would be 110% of the cost.
  • Cost plus pricing covers the full cost of creating a product or fulfilling a service, and the markup guarantees a positive return, as long as the user or person calculating the cost per item is all added up correctly .

What are the two common forms of cost plus pricing?

1) Cost plus cost percentage price - only for total unit cost.

2) Cost Plus Fixed Price - The supplier will be reimbursed for all costs no matter how high, but will only receive the fixed fee as profit, regardless of the final cost of the project.

To learn more about cost plus pricing method visit:

https://brainly.com/question/20371898

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