The Expected Cost Plus Margin Approach Which Involves Estimating Expected

question 49

Short Answer

The expected cost plus margin approach which involves estimating expected costs to provide the good or service and adding a profit margin typical for that good or service.

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Definitions:

Tax Rate

The slice of a corporation's or individual's income designated for tax.

Annual Costs

The total expenses incurred by an individual or organization over the course of a year.

Required Return

The minimum return an investor expects to achieve by investing in a particular asset, considering the risk involved.

Customized Machine

A piece of equipment specifically designed and built to meet the unique requirements of a particular business or manufacturing process.