Which of the following industries is most likely to use cost-plus pricing for its products?

Multiple choice question.

automobile

construction

athletic clothing

jewelry

1 answer

Cost-plus pricing is most commonly used in industries where it is difficult to determine the precise market value of a product, often seen in project-based or custom services. Among the options provided, the construction industry is the most likely to use cost-plus pricing. This method allows construction companies to cover their costs and add a markup for profit, which is particularly useful in projects where costs can vary significantly.