The Cost-Plus Pricing Approach's Major Advantage Is

question 112

Multiple Choice

The cost-plus pricing approach's major advantage is

• A) it considers customer demand.
• B) that sales volume has no effect on per unit costs.
• C) it is simple to compute.
• D) it can be used to determine a product's target cost.

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Definitions:

Money Supply

The sum of all financial resources circulating within an economy at a particular moment, encompassing cash, coins, and the amounts present in checking and savings accounts.

Recessionary Gap

The difference between the actual output of an economy and its potential output at full employment, during a recession.

Discount Rate

The rate at which the central bank lends money to commercial banks and other financial institutions through its discount window.

Fiscal Expenditure

Government spending, including spending on goods and services, welfare, and public works, financed through taxation or borrowing.