Cost-plus is a pricing strategy where a business determines the selling price of a product by adding a specific markup to its total production cost. This total cost includes all expenses related to manufacturing, such as materials, labor, and overhead. The markup is usually a percentage of the total cost, ensuring that the company covers its expenses and earns a profit. This method is commonly used in industries like construction and manufacturing, where costs can be accurately tracked. By using cost-plus pricing, companies can simplify their pricing process and ensure they remain profitable while providing transparency to clients about how prices are determined.