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.

---

Definitions:

Skinner

B.F. Skinner, an American psychologist, is known for his work in developing the theory of behaviorism and for his invention of the operant conditioning chamber.

Stimulus-Stimulus Learning

A type of learning where an association is formed between two stimuli, leading to a new learned response.

Two-Factor Theory

A psychological theory proposing that emotion is based on two factors: physiological arousal and cognitive label of the arousal, proposed by Stanley Schachter and Jerome E. Singer.