In the Cost-Plus Pricing Approach, the Desired ROI Per Unit

question 81

Multiple Choice

In the cost-plus pricing approach, the desired ROI per unit is computed by multiplying the ROI percentage by

• A) fixed costs.
• B) total assets.
• C) total costs.
• D) variable costs.

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Definitions:

Production Budget

An estimate of the total units to be produced in a given period, factoring in expected sales and inventory requirements.

Cash Budget

A financial plan that estimates incoming and outgoing cash flows over a specific period to ensure liquidity and solvency.

Disbursements

Payments made by a business, often involving cash outflows for operating expenses, purchasing assets, or repaying debt.

Minimum Cash Balance

The lowest amount of cash a company seeks to maintain in its accounts to ensure liquidity and cover short-term obligations.