What Cost Concept Used in Applying the Cost-Plus Approach to Product

question 75

Multiple Choice

What cost concept used in applying the cost-plus approach to product pricing includes only desired profit in the markup?

• A) product cost concept
• B) variable cost concept
• C) sunk cost concept
• D) total cost concept

Identify and avoid common writing pitfalls in academic writing.

Recognize the importance and method of replicating research methods.

Grasp the ethical considerations in research methodology.

Comprehend the significance of methodological clarity for research replication and validation.

---

Definitions:

Internal Failure Costs

Internal Failure Costs are expenses incurred when a product fails to meet quality standards before it is shipped to customers, including scrap, rework, and downtime.

External Failure Costs

Costs that arise when a product fails to meet quality standards after being delivered to the customer, including returns, repairs, and warranty claims.

Quality Cost Report

A document detailing the costs associated with ensuring the quality of products or services, including prevention, appraisal, and failure costs.

Prevention Costs

Expenses incurred to avoid defects in products or services, including costs related to quality control and training.