Question

What are the two common forms of cost-plus pricing?
Multiple select question.

fixed-fee

standard markup

target profit

percentage-of-cost

Answer 1

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**.