Cost Plus Method
The Cost Plus Method is a pricing strategy used by businesses to determine the selling price of a product or service. This method involves calculating the total cost of production, which includes materials, labor, and overhead, and then adding a specific markup percentage to ensure profit.
This approach is commonly used in industries like construction and manufacturing, where costs can be accurately tracked. By using the Cost Plus Method, companies can maintain transparency with clients and ensure that all expenses are covered while achieving a desired profit margin.