If a Company Uses a Cost-Plus Approach to Pricing, It

question 83

Multiple Choice

If a company uses a cost-plus approach to pricing, it will find:

• A) there are several different definitions of cost and the higher the cost, the higher the markup percentage.
• B) there are several different definitions of cost and the higher the cost, the lower the markup percentage.
• C) there is one definition of cost, and there is no relationship between cost and the markup percentage used.
• D) there is one definition of cost, and there is no markup percentage with the cost-plus approach.
• E) it is in violation of generally accepted accounting principles (GAAP).

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Definitions:

Discriminative Stimulus

A stimulus that signals whether a certain response or behavior is likely to be rewarded, ignored, or punished.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without prior learning.

White Rat

Often used in psychological experiments, a specific breed of rat distinguished by its albino coloration.

Modern Conceptualization

The current understanding or interpretation of an idea, theory, or system based on contemporary perspectives or data.