Two Forms of Cost-Plus Pricing Are

question 206

Multiple Choice

two forms of cost-plus pricing are

• A) cost-plus fixed-fee pricing and cost-plus variable-fee pricing.
• B) cost-plus ROI pricing and cost-minus markdown pricing.
• C) target return on sales pricing and target return on investment pricing.
• D) cost-plus percentage-of-cost pricing and cost-plus fixed-fee pricing.
• E) dynamic pricing and flexible pricing.

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Definitions:

Labor

The human effort, both physical and mental, used in the production process.

Capital

Financial assets or the financial value of assets, such as cash and securities; also, factories, machinery, and equipment used to produce goods or services.

Production Outcomes

Production outcomes refer to the results of the production process, quantified in terms of quantity, quality, and efficiency of the goods or services produced.

Stocks

Stocks represent shares of ownership in a company, giving shareholders a claim on part of the company's assets and earnings.