When Estimated Costs Are Used in Applying the Cost-Plus Approach

question 115

True/False

When estimated costs are used in applying the cost-plus approach to product pricing, the estimates should be based upon normal levels of performance.

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Definitions:

High Level

Pertains to something that is of a superior or advanced status, complexity, or importance.

Variable Ratio

A reinforcement schedule in which the number of responses required for a reward varies, making the reinforcement unpredictable and often leading to a high and steady rate of response.

Schedule of Reinforcement

refers to the strategy for timing and application of rewards to encourage or strengthen desired behaviors in behavioral psychology.

Contingent Reinforcement

A type of conditioning in which a reward or punishment (the reinforcement) is given only after the desired response or behavior occurs, making it contingent on the behavior.