The Basic Formula for _____ Is Price = Direct Costs

question 35

Multiple Choice

The basic formula for _____ is Price = Direct costs + Overhead + Profit margin.

• A) Contribution margin
• B) Return on investment
• C) Cost-based pricing
• D) ABC costing
• E) Net profit

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Definitions:

Yardstick Approach

A method of decision-making or evaluation that involves comparing alternatives against a predefined standard or "yardstick."

Analytical Report

A type of document that presents data and analysis to support business decisions, often including recommendations.

Yardstick Approach

A method of performance evaluation that compares a company's results against a standard or benchmark.

Criteria Evaluation

The process of assessing something based on a set of standards or benchmarks to make a judgment or decision.