In Time-And-Material Pricing, the Charge for a Particular Job Is

question 8

Multiple Choice

In time-and-material pricing, the charge for a particular job is the sum of the labour charge and the

• A)materials charge.
• B)material loading charge.
• C)materials charge + desired profit.
• D)materials charge + the material loading charge.

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Definitions:

Perpetual Inventory System

An accounting method where inventory quantities and cost of goods sold are continuously updated with each sale or purchase transaction.

Merchandise On Hand

The inventory of goods that a company currently has available for sale.

Operating Expenses

The costs associated with running a company’s day-to-day operations, excluding the cost of goods sold, such as salaries, rent, and utilities.

Net Income

The amount of profit left after all expenses, taxes, and costs have been subtracted from total revenue.