Cost-Based Pricing Adds a Desired Profit Margin to the Cost

question 330

True/False

Cost-based pricing adds a desired profit margin to the cost of producing a product.

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Definitions:

Correcting Entry

A journal entry made to amend a previously recorded incorrect transaction in the financial records.

Accounts Receivable

Refers to the money owed to a company by its customers for goods or services sold on credit.

Accounts Payable

Money owed by a company to its suppliers or creditors for goods or services received but not yet paid for.

Equipment

Tangible personal property that is used in operations, such as machinery, computers, and furniture, which is not intended for sale.