Cambridge O Level Business Studies · Syllabus 7115 · Marketing
Cost-Plus Pricing
What is Cost-Plus Pricing?
A pricing method in which a business calculates the cost of producing one unit and adds a fixed percentage or amount as a mark-up to arrive at the selling price. It is simple to apply and guarantees a margin over cost at the planned level of output, but it takes no account of what customers are willing to pay or of competitors' prices, and the unit cost itself changes when output changes.
This definition is part of the Marketing chapter in Cambridge O Level Business Studies.
Last reviewed Syllabus 2026