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What are the two common forms of cost-plus pricing?

Multiple select question.

fixed-fee

standard markup

target profit

percentage-of-cost

1 answer

The two common forms of cost-plus pricing are:

  1. Standard markup - This method involves adding a standard percentage or amount to the cost of the product to arrive at the selling price.

  2. Percentage-of-cost - This is a specific type of markup that is calculated as a percentage of the total cost of the product.

So, the correct selections are standard markup and percentage-of-cost.