Cost-Plus Pricing

question 29

Multiple Choice

Cost-plus pricing

• A)is used only in oligopolistic market structures
• B)simplifies pricing policy by adding a markup to average total cost
• C)in actual practice leads to markups which are greater for more elastic demand curves
• D)is likely to increase profits more than the use of marginal analysis
• E)requires the firm to project the amount which will be sold and then "mark-up" the price based on average variable cost

Understand the purposes and outcomes of different types of development assignments and their relevance to skills enhancement.

Appreciate the importance of coaching as a tool for addressing developmental needs and enhancing managerial effectiveness.

Understand and define key measures of variability: range, interquartile range, variance.

Calculate the range for a given data set.

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Definitions:

Gross Profit

The difference between sales revenue and the cost of goods sold before accounting for operating expenses, interest, and taxes.

Merchandising Business

A type of business that purchases goods at wholesale prices and sells the same goods at retail prices to end-users or customers.

Financial Statements

Formal records that outline the financial activities and conditions of a business, organization, or individual, often including the balance sheet, income statement, and cash flow statement.

Service Business

A type of business that provides intangible products or services to customers, rather than physical goods.