In Cost-Plus Pricing, the Target Selling Price Is Calculated as

question 43

Multiple Choice

In cost-plus pricing, the target selling price is calculated as

• A)variable cost per unit + desired ROI per unit.
• B)fixed cost per unit + desired ROI per unit.
• C)total unit cost + desired ROI per unit.
• D)variable cost per unit + fixed manufacturing cost per unit + desired ROI per unit.

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Definitions:

Opportunity Cost

The value of the next best alternative that is foregone as a result of making a decision.

Technological Advance

The progression or improvement in technology, leading to enhanced productivity, efficiency, or quality in goods and services.

Economy

The system by which goods and services are produced, distributed, and consumed within a particular area or country.

Basic Decisions

Fundamental choices or determinations made to guide actions, policies, or strategies, often in businesses or personal planning.