A Firm That Uses the Product Cost Plus a Target

question 117

Multiple Choice

A firm that uses the product cost plus a target markup percentage to calculate the sales price is using:

• A) cost-based pricing.
• B) expense pricing.
• C) discount pricing.
• D) fixed expense pricing.

---

Definitions:

Channel Richness

The ability of a communication channel to effectively convey information, including the extent to which it can handle multiple cues and facilitate rapid feedback.

Status Differences

Differences between persons of higher and lower ranks.

Communication Barriers

Any obstacle that prevents clear understanding and exchange of information between individuals or groups.

Supportive Communication Principles

A set of tools focused on joint problem solving.