Define full cost pricing and give an example of it.

Full cost pricing is a pricing strategy in which the entire costs of producing and selling a product or service (including overhead and administrative costs) are used to determine the final price of the product or service. An example of full cost pricing would be a restaurant. For example, a restaurant might consider the costs of ingredients, rent, labor, utilities, and any other overhead costs when determining the price of a dish. In this case, the customer will pay the same amount regardless of how much the dish costs the restaurant to make. The ultimate goal of full cost pricing is to attain the appropriate balance between cost and customer demand in order to ensure that the company can remain profitable while continuing to satisfy their customers.