Critical Thinking Cost-plus pricing used to be the most common approach to setting prices in the marketplace. It has the advantages of being simple and ensuring that a profit margin is achieved on every unit sold.

However, as highlighted in the chapter, there are alternative approaches to setting prices.

Do you think that cost-plus pricing is still applicable in today’s world, or are there more suitable approaches to setting prices? For what type of products or industries do you think cost-plus pricing can still be used effectively?