Summing the Total Unit Cost of Providing a Product or Service

question 113

Multiple Choice

Summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price is referred to as _________.

• A)standard markup pricing
• B)experience curve pricing
• C)cost-plus pricing
• D)product-line pricing
• E)target return-on-investment pricing

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Definitions:

Interest

A charge for borrowed money, generally a percentage of the amount borrowed, paid by the borrower to the lender over a set period.

Borrower's Payment

The amount of money a borrower is required to pay back to a lender, often on a regular schedule, including both principal and interest.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return, used in discounting to assess investment opportunities.

Number of Periods

A figure representing the count of time intervals, such as months or years, in various financial calculations.