When Standard Costs Are Used in Applying the Cost-Plus Approach

question 59

True/False

When standard costs are used in applying the cost-plus approach to product pricing, the standards should be based upon normal levels of performance.

Know the determination factors of wage rates in collective bargaining and their relation to monetary policy.

Realize the limitations of active policy in influencing output under rational expectations.

Identify the conditions under which fiscal and monetary policy can stimulate output and employment in the short run.

Distinguish between an active and passive approach to macroeconomic policy.

---

Definitions:

SUCCESs Principles

A set of guidelines intended to increase the effectiveness of communication by making messages simple, unexpected, concrete, credible, emotional, and stories-based.

Storytelling

The art of using narrative and tales to convey messages, engage audiences, and evoke responses, widely used in branding and marketing strategies.

Simple

Straightforward or easy to understand, lacking complexity or complications.

Societal Norms

The accepted behaviors, practices, and standards that a society or social group considers normal or appropriate.