The ________ Pricing Strategy Means Adding Up All the Costs

question 67

Multiple Choice

The ________ pricing strategy means adding up all the costs involved,such as material,labor,rent,overhead,and so forth,and adding a percentage mark-up as profit.

• A) cost-plus
• B) competitor model
• C) revenue markup
• D) price percentage

Recognize the ethical issues associated with centralized organizational structures and communication barriers.

Understand the concept of power in organizational relationships and its ethical implications.

Learn about the influence of group norms and informal channels on ethical behaviors and organizational culture.

Understand the concepts of intrinsic and extrinsic motivation and their roles in behavior.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs in the cost of goods sold and treats fixed overhead expenses as period costs.

Operating Income

Earnings from a company’s core business operations, excluding deductions of interest and taxes.

Absorption Costing

An accounting method that includes all direct costs and overheads involved in manufacturing a product in the cost of that product.

Contribution Margin

The amount of revenue remaining after subtracting the variable costs associated with producing goods, contributing to covering fixed costs and profit.