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So far I’ve been using ISNULL(dbo.fn_GetPrice(ItemId), 0) to make it not nullable (rather call it default-valued, but whatever).
Is this the right way?
Yes, that is the right way to do it. By using the
isnullfunction you are creating an expression that must return a value, no matter what. This is evaluated by SQL Server to be a computed column that isnot null.