Which of the Following Methods Uses a Base-Cost Figure Per

question 21

Multiple Choice

Which of the following methods uses a base-cost figure per unit and adds a markup to cover unassigned costs and to provide a profit?

• A) marginal analysis pricing
• B) breakeven pricing
• C) modified breakeven pricing
• D) cost-plus pricing

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Definitions:

Marginal Costs

The amplification of total charges incurred from producing an incremental unit of a product or service.

Upward

Referring to a direction or trend that indicates an increase, improvement, or rise in position or value.

Industry Demand Curve

Represents the total demand for a product or service across all consumers in a given market, showing how quantity demanded varies with price.

Infinitely Price Elastic

Describes a situation where the quantity demanded or supplied changes by an unlimited amount in response to any change in price.