A Company Using Activity-Based Pricing Marks Up the Direct Cost

question 96

Multiple Choice

A company using activity-based pricing marks up the direct cost of goods by 30% and then adds the cost of the services that are provided.Indirect costs are charged as follows: $8.00 per order placed; $4.00 per separate item ordered; $30.00 per return.A customer places 10 orders with a total direct cost of $3,000, orders 300 separate items, and makes 5 returns.What will the customer be charged?

• A)$3,000
• B)$3,900
• C)$5,330
• D)$5,759

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Definitions:

Formed Throughout Life

This term refers to the continuous development, adaptation, or formation of structures, behaviors, or knowledge over an individual's lifetime.

Intracellular Fluid

Intracellular Fluid is the liquid found inside the cells, constituting about two-thirds of the total body water and playing a crucial role in maintaining cellular function.

Cerebrospinal Fluid

Cerebrospinal fluid is a clear, colorless body fluid found in the brain and spinal cord, which acts as a cushion and provides a vital function in cerebral autoregulation.

Lysosome

Membrane-bound organelles found in nearly all animal cells that use enzymes to break down waste materials and cellular debris.