Wednesday, February 4, 2009

TYPES OF PRICING.

cost-plus pricing:
such a pricing approach often is called cost-plus pricing,because the price is equal to cost plus a markup.depending on how cost is defined,the markup percentage may differ.

Reture-on-investment pricing:
A common approach to determining the profit margin in cost-plus pricing is to base profit on the firm's target return on investment (ROI).

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