Using Cost Plus Pricing,what Is the Price If ATC =

question 38

Multiple Choice

Using cost plus pricing,what is the price if ATC = $14.50 and the target rate of return is 4 percent?

• A)$15.10
• B)$49.34
• C)$14.5
• D)$22.10

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Definitions:

Sales Discounts

Refers to the reduction in the amount payable by a customer if the customer pays their invoice within a specific period as defined by the seller.

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that may not be collectible.

Allowance Method

An accounting technique used to estimate and account for potential uncollectible accounts receivable and bad debts.

Net Realizable Value

The projected selling price of items subtracted by their sales or disposal expenses.