It appears from research evidence that a cost-plus approach influences pricing decisions in practice. What is meant by cost-plus pricing and what are the problems of using this approach?

Kaplan plc makes a range of suitcases of various sizes and shapes. There are 10 different models of suitcase produced by the business. In order to keep inventories (stock) of finished suitcases to a minimum, each model is made in a small batch. Each batch is costed as a separate job and the cost for each suitcase deduced by dividing the batch cost by the number of suitcases in the batch.