When Markup Is Based on Cost

question 45

Multiple Choice

When markup is based on cost:

• A)Cost is the portion
• B)Markup is the rate
• C)Cost is equal to selling price
• D)Cost is 100%
• E)None of these

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Definitions:

Res Ipsa Loquitur

A legal doctrine that allows for the presumption of negligence in a case where the accident occurring is the type which normally does not happen in the absence of negligence.

Product Liability

The legal liability a manufacturer or seller incurs for producing or selling a faulty product resulting in injury or harm to a consumer.

Express Warranty

A clearly stated promise or guarantee by a seller about the quality or functionality of a product.

Basis of the Bargain

The foundation or crucial terms agreed upon in a contract that are a major reason one party enters into the agreement.