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:

Business Email

A form of electronic communication typically used for professional or commercial purposes, such as sharing information, conducting transactions, or making inquiries.

Goodwill Ending

The positive and optimistic conclusion of a communication or business correspondence, aimed at leaving a favorable impression.

Informative Messages

Communications designed to provide essential information to a specific audience.

Reader's Hobbies

interests or activities undertaken for pleasure and relaxation, specifically in the context of what readers might enjoy.