Which of the Following Statements Is True of Cost-Based Pricing

Multiple Choice

Which of the following statements is true of cost-based pricing?

A) It determines price by adding a fixed margin to the per-unit cost of the product.
B) It determines the price based on the amount consumers are willing to pay for a product.
C) It is an interesting theoretical approach to pricing, but it is seldom used in the real world.
D) It is obtained by subtracting the desired margin, which yields the target costs.