If a Company Uses a Cost-Plus Approach to Pricing, It

question 50

Multiple Choice

If a company uses a cost-plus approach to pricing, it will find:

• A)there are several different definitions of cost and the higher the cost, the higher the markup percentage.
• B)there are several different definitions of cost and the higher the cost, the lower the markup percentage.
• C)there is one definition of cost, and no relationship between cost and the markup percentage used.
• D)there is one definition of cost, and there is no markup percentage involved.
• E)it is in violation of generally accepted accounting principles (GAAP).

---

Definitions:

Positive Abstractions

Conceptual ideals or values that are perceived as beneficial or constructive to individuals or society.

Ethical Ideations

The process of forming and contemplating ideas, principles, or standards of right conduct.

Desirable

An attribute or quality that makes something preferred or pleasing to individuals or groups.

Optimal Solutions

The most favorable or desirable solutions among all feasible solutions in a problem-solving or decision-making process.