Cost-based pricing models

The reading assignment describes various cost-based pricing models commonly used in the supply management function. Using the table that follows, find the estimating approach that corresponds to your last name.

Your Last Name Begins With Pricing Models

A-H Cost Markup Pricing

I-P Margin Pricing

Q-Z Rate-of-Return Pricing

Rate-of-Return Pricing

Post the following information for the assigned approach:

Your assigned estimating approach.

A brief description of how to perform the estimate.

Relative accuracy of the results.

When this approach would be most appropriate to use.

Guided Response: Respond to at least two of your classmates’ posts. Discuss the similarities and differences between your assigned approach and the other two.

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