Cost-Plus Method Is Most Appropriate When

question 49

Multiple Choice

Cost-plus method is most appropriate when:

• A) there are comparable uncontrolled sales and the related buyer merely distributes the goods it purchases.
• B) the related buyer acts as a sales subsidiary.
• C) the related buyer does not add substantial value to the product.
• D) the related buyer does more than simply distribute the goods it purchases.

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Definitions:

Group Average

The mean or median value obtained by summing the characteristics or scores of all members of a group and dividing by the number of members.

Typical

Representing the characteristics of a group, category, or class; usual or expected.

Atypical

Not typical, common or regular; unusual or abnormal in characteristics or behavior.

Deviant

Behavior or actions that deviate from the accepted norms of society.