The Amount Added to a Product's Cost to Meet Profit

question 269

Short Answer

The amount added to a product's cost to meet profit targets is usually expressed as a percentage of
selling price.
selling costs.
component costs.
total costs.
wholesale price.

Grasp the importance and methods of HR analytics in strategic HR planning and decision making.

Understand key political, social, and economic trends of the late 20th century in America.

Analyze the impact of Reagan's policies on domestic and foreign affairs.

Recognize the cultural shifts in America during the 1970s and 1980s.

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Definitions:

Activity Base

A measure used to allocate costs to activities, such as units produced, hours worked, or miles driven.

Service Departments

Units within an organization that support other departments but do not directly contribute to profit, such as human resources and maintenance.

Investment Turnover

A measure of a company's ability to use its assets to generate sales or revenue, indicating how efficiently the investments are being used.

Activity Base

A measure used as a basis for allocating costs in activity-based costing, relating costs to the activities that drive the need for those costs.