Examlex
Which of the following statements is not true about sole proprietors?
Mark-Up Percentage
Mark-up percentage is the ratio between the cost of a good or service and its selling price, expressed as a percentage over the cost, indicating the profit margin.
Return On Investment
A measure used to evaluate the efficiency or profitability of an investment compared to its initial cost.
Cost-Plus Pricing
A pricing approach that involves adding a consistent percentage or fixed sum to the production cost of a product or service to set its sale price.
Absorption Cost
A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.
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