Which of the Following Best Explains Cost-Based Pricing

Multiple Choice

Which of the following best explains cost-based pricing? 

A)  A particular profit margin is added to some costs, including the cost of sales. 
B)  A particular profit margin is added to all costs, including the cost of sales. 
C)  A particular profit margin is added to the cost of sales. 
D)  A 5% profit margin is added to the cost of sales.