The Cost-Plus Pricing Approach's Major Advantage Is

question 112

Multiple Choice

The cost-plus pricing approach's major advantage is

• A) it considers customer demand.
• B) that sales volume has no effect on per unit costs.
• C) it is simple to compute.
• D) it can be used to determine a product's target cost.

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Definitions:

Constant Rate

A situation or condition in which a particular variable remains unchanged over a period of time.

Dividends

A corporation's distribution of profits to its shareholders as payments.

Paid

Refers to the status of a financial obligation that has been fulfilled or settled.

Constant Annual Dividend

This refers to dividends that are paid out to shareholders at a constant rate each year, without fluctuation.