Cost-Plus Pricing Adds an Amount to

question 206

Multiple Choice

Cost-plus pricing adds an amount to

• A)the cost of the product or service to cover operating costs and contribute to its profit.
• B)variable and fixed costs to cover overhead.
• C)the sales price to cover unexpected costs.
• D)contribution margin to cover fixed costs.

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Definitions:

Utility Computing

A computing model where computing resources are provided as a metered service similar to utilities such as electricity.

On-demand

A service or product that is available for use or download at any time, immediately responding to consumer requirements.

SaaS

Software as a Service is a software distribution model in which applications are hosted by a vendor or service provider and made available to customers over the internet.

On-demand CRM

Customer Relationship Management software hosted on the cloud, allowing businesses to access their CRM tools over the internet on a pay-per-use or subscription basis.