Which Pricing Method Uses a Base-Cost Figure Per Unit and Adds

question 39

Multiple Choice

Which pricing method uses a base-cost figure per unit and adds a markup to cover unassigned costs and to provide a profit?

• A) marginal analysis
• B) breakeven
• C) modified breakeven
• D) cost-plus

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Definitions:

Net Operating Income

A calculation used to analyze the profitability of income-generating real estate investments, which subtracts all operating expenses from all revenue generated from properties.

Average Net Fixed Assets

The average value of a company's property, plant, and equipment (PP&E) net of accumulated depreciation over a certain period.

Intangible Asset

An asset that lacks physical substance but is identifiable and provides economic benefits, such as patents or trademarks.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.