When Determining the Markup to Be Used in a Cost-Plus

question 50

Multiple Choice

When determining the markup to be used in a cost-plus pricing formula, many companies base the markup on a target:

• A) return on investment.
• B) sales margin.
• C) capital turnover.
• D) earnings per share.
• E) debt-to-equity ratio.

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Definitions:

Perceptual Constancy

The ability of the perceptual system to recognize objects as having consistent shape, size, and color despite changes in perspective, distance, or lighting.

Visual Disparity

The difference in the images received by the two eyes, which contributes to the perception of depth.

Hair Cells

Sensory cells located in the inner ear that are essential for hearing and balance.

Auditory Nerves

The auditory nerves are a set of nerves that carry sound information from the ears to the brain, enabling hearing.