Cost-Plus Pricing is a straightforward method used by businesses to determine the selling price of a product or service. It involves calculating the total cost of producing or purchasing an item, which includes materials, labour, and overheads, and then adding a desired profit margin on top.
Cost-Plus Pricing is particularly useful for companies looking to cover their costs comfortably while ensuring a predictable profit. It is important for GCSE Business students to understand this pricing strategy, as it makes the relationship between costs, pricing, and profit clear.
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