Customs and Practices of the Business That Are Known by People

question 34

Multiple Choice

Customs and practices of the business that are known by people in the business and that are usually assumed by parties to a contract for goods of that type are known as ________.

• A)usage of trade
• B)warranties
• C)courses of action
• D)fair norms

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Definitions:

Variable Costs

Costs that vary directly with the level of production or sales.

Total Cost Method

An accounting approach that sums up the direct, indirect, fixed, and variable costs associated with manufacturing a product.

Cost-Plus Approach

A pricing strategy where the selling price is determined by adding a specific markup to a product's cost to ensure profitability.

Markup Percentage

A measure of the difference between the cost of a product and its selling price, expressed as a percentage of the cost.