When a Seller Determines the Selling Price by Adding to Cost

question 101

Multiple Choice

When a seller determines the selling price by adding to cost an amount for profit and expenses not previously accounted for,the seller is using _____ pricing.

• A) profit maximization
• B) demand-oriented
• C) break-even
• D) target return
• E) markup

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Definitions:

Organizational Policies

Established guidelines and rules created by an organization to govern its operations, behavior, and decisions.

Job Enlargement

The process of adding more variety and responsibilities to a job to increase job satisfaction and performance.

New Skills

Abilities or expertise acquired through learning or training that were not previously possessed.

Responsibilities

Duties or obligations one is expected or required to fulfill.