One Pitfall of Cost-Plus Pricing for the Buyer Is That

question 169

True/False

One pitfall of cost-plus pricing for the buyer is that the seller may increase costs to establish a larger profit base.

---

Definitions:

Implied Bailment

A bailment relationship formed without explicit agreement, based on the circumstances implying that the possessor of personal property is expected to return it to the owner.

Liability

The state of being responsible for something, especially in terms of legal or financial obligations.

Hotel Safe

A secure lockbox provided in hotel rooms for guests to store their valuables during their stay.

Negligence

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting harm.