Many Managers Set Prices by Cost Plus Pricing

question 128

Multiple Choice

Many managers set prices by cost plus pricing.What is cost plus pricing? Assume it is a long run decision.

• A) average cost per unit plus markup per unit
• B) average target cost plus markup per unit
• C) average cost per unit minus markup per unit
• D) average target cost minus markup per unit

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Definitions:

Deferred Payment

A financial arrangement allowing for payment to be made at a later date instead of at the time of purchase or service rendered.

Shared Commitment

A mutual understanding and agreement among members of a group to work towards a common goal or adhere to a set of standards.

Organizational Environment

Encompasses the external and internal factors that influence an organization's operating conditions, including economic, technological, social, and legal aspects.