Cost-Plus Pricing Refers to

question 337

Multiple Choice

Cost-plus pricing refers to

• A) summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price.
• B) setting the price of a line of products at a number of different price points.
• C) adding a fixed percentage to the cost of all items in a specific product class.
• D) setting prices to achieve a profit that is a specified percentage of the sales volume.
• E) increasing the price slightly to protect against undue profit losses from unforeseen environmental factors.

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Definitions:

Strict Foreclosure

A legal process by which a secured lender can take possession of the collateral property without the need to sell it, typically when the value of the collateral is less than the debt owed.

Satisfaction of Debt

Satisfaction of Debt is the fulfillment of a financial obligation, such as the repayment of a loan, thereby releasing the debtor from further liability.

Owner's Rights

Legal rights conferred to owners, entitling them to use, enjoy, and dispose of their property as they see fit.

Strict Foreclosure

A legal process by which the secured lender obtains the title to the mortgaged property without the sale thereof, when the borrower fails to meet the obligations.