Cost oriented pricing

Cost-oriented or cost-based pricing method is the purest form of pricing method. In this pricing method, a certain percentage of the desired profit is added to the cost of the product to obtain the final price of the product. The cost of the product is the total cost spent on the production of the product.

The followings are the different sub-categories of cost-oriented pricing methods.

1. Cost Plus Pricing:

The cost-plus pricing method is the simplest, and the price of goods using this method is determined by following the most basic idea behind the concept of business. The idea is that a businessman produces and sells a product _____ _____ _______ _________ ____ ________ __________ _________.
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