Which of the Following Statements Is FALSE Regarding Cost-Plus Pricing

question 171

Multiple Choice

Which of the following statements is FALSE regarding cost-plus pricing?

• A)A company selects a cost base that it regards as reliable.
• B)A company uses a markup percentage that estimates a product price that covers full product costs and earns the required return on investment.
• C)The selling price computed is only a prospective price.
• D)The cost-plus price chosen has already been studied for customer reaction to the price.

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Definitions:

Expressed Emotion

Family interaction style in which families are overinvolved with each other, are overprotective of the disturbed family member, voice self-sacrificing attitudes to the disturbed family member, and simultaneously are critical, hostile, and resentful of this member.

Relapse

Reducing the impact of the disease on the person’s quality of life.

Interventions

Actions taken to improve a situation, especially in health, social, or behavioral contexts, often with the goal of preventing harm or promoting well-being.

Schizophrenogenic Mother

An outdated concept that posited a cold, domineering maternal figure could cause schizophrenia in her child.