A Cost-Plus Method of Determining a Product's Selling Price Adds

question 104

Short Answer

A cost-plus method of determining a product's selling price adds a _________________________ to total product cost to reach a target price.

---

Definitions:

Balance Sheet

A financial statement that reports a company's assets, liabilities, and shareholders' equity at a specific point in time, providing a basis for computing rates of return and evaluating its capital structure.

Investment in Bonds

Financial investments made by purchasing debt securities issued by corporations or governments, aiming to earn interest income.

Equity Method

An accounting technique used for recording investments in which the investor has significant influence over the investee but does not exercise full control.

Significant Influence

This term refers to the power to participate in the financial and/or operating policy decisions of another entity, but not control those policies. It is often quantified by owning 20% to 50% of the voting shares of the investee company.