The Two Forms of Cost-Plus Pricing Are

question 202

Multiple Choice

The two forms of cost-plus pricing are

• A) cost-plus-fixed-fee pricing and cost-plus-variable-fee pricing.
• B) cost-plus-ROI pricing and cost-percentage-ROI pricing.
• C) target return on sales pricing and target return on investment pricing.
• D) cost-plus-percentage-of-cost pricing and cost-plus-fixed-fee pricing.
• E) dynamic pricing and flexible pricing.

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Definitions:

Dividend Payout Ratio

The proportion of a company's earnings paid out to shareholders as dividends, often expressed as a percentage of net income.

Sales Increase

The growth in revenue or number of units sold over a specific period, often used as a measure of business performance.

Full Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal circumstances.

Operating Capacity

The total output a company can produce using its current resources, under normal working conditions.