Which of the Following Is the Formula for Cost-Plus Pricing

question 7

Multiple Choice

Which of the following is the formula for cost-plus pricing?

• A) (unit cost) / (1-X%)
• B) (unit cost) x (1-X%)
• C) (unit cost) + (1-X%)
• D) (unit cost) - (1-X%)

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Definitions:

Selling Price

The price at which a product or service is sold to customers, determining the revenue generated from sales activities.

Note Payable

A written promise to pay a specified sum of money, usually with interest, by a certain date.

Financing Activities

Transactions related to raising capital and paying back investors, including issuing equity and debt as well as dividend payments.

Cash Flow Statement

A report summarizing the total cash entering a company from operational activities and external investments, alongside the total cash spent on business operations and investments within a specific timeframe.