When Cost-Based Pricing Is Employed and Mark Up Is Based

question 24

Multiple Choice

When cost-based pricing is employed and mark up is based on manufacturing costs, the mark up must be sufficiently large enough to:

• A)cover selling expenses.
• B)cover administrative expenses.
• C)provide for the desired profit.
• D)accomplish all of the above.

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Definitions:

Checking Account

A bank account that allows easy access to funds, typically through checks and electronic debits, for everyday transactions.

Newly Received Loan

Funds borrowed for the first time, typically involving an agreement on repayment terms and interest rates.

Fed

The Federal Reserve System, the central banking system of the United States, which regulates banks, manages the country's money supply, and aims to ensure economic stability.

U.S. Government Securities

Instruments for raising funds issued by the Treasury Department of the United States to support the federal government's expenditures.