Mention the advantages of cost plus pricing.

The advantages of cost plus pricing are:

1. Most widely used technique — It is a safe and simple approach to pricing, easy to understand and apply.
2. Full coverage of costs — It ensures full coverage of all costs (production and marketing) involved in offering the product.
3. Reasonable return — It helps in achieving a reasonable return on capital employed by adding a fixed profit margin.
4. Logical and defensible — The method is logical and can be defended on moral grounds, as it is based on covering legitimate costs.
5. Discourages cut-throat competition — It discourages cut-throat competition in the market by maintaining stable prices.