Question

Although the cost-plus method approach to product pricing may be used by management as a general guidance, when are some examples of other factors that managers should also consider in setting product prices?

Answer 1

Answer: value-based pricing.

Explanation:

Value-based pricing, in its literal sense, means basing pricing on the benefits of the commodity perceived by the customer rather than on the exact cost of making the product. For example, a painting may be priced much higher than canvas and painting prices: in fact, the price depends a lot on who the painter is.