When Using Cost-Plus Pricing, Which Amount Per Unit Does Not

question 61

Multiple Choice

When using cost-plus pricing, which amount per unit does not change when the expected volume differs from the budgeted volume?

• A) Variable cost
• B) Fixed cost
• C) Desired ROI
• D) Target selling price

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Definitions:

Economic Activities

Actions that involve the production, distribution, and consumption of goods and services in an economy.

Measurement System

The collection of units of measurement and rules relating them to each other, used to quantify physical quantities.

Accounting Equation

A fundamental principle of accounting stating that assets equal liabilities plus owners' equity, representing the balance sheet's structure.

Assets

Resources owned or controlled by a business, expected to produce benefits or economic value in the future.