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:

Investment Account

An account held at a financial institution that contains securities, cash, and other assets for investment purposes.

Subsidiary

A company that is controlled by another company, known as the parent company, through majority ownership.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Investment in Grub

An allocation of resources into a project or company named Grub, expecting future returns.