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Who proposed a two-factor theory?
Selling Price
The amount of money for which a product or service is sold to customers.
Markup
The amount added to the cost price of goods to cover overhead and profit, determining the selling price.
Total Cost Method
A cost-plus method of price setting in which all the costs of manufacturing the product plus the selling and administrative expenses are included in the cost amount to which the markup is added.
Manufacturing Cost
The total expense incurred in the process of producing a product, including direct labor, direct materials, and overhead costs.
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