Cost-Plus Pricing May Be a Reasonable Way to Determine Price

question 35

Multiple Choice

Cost-plus pricing may be a reasonable way to determine price when

• A)marginal cost and average fixed cost are roughly equal.
• B)marginal cost and average cost are about the same.
• C)marginal cost differs significantly from average cost.
• D)marginal cost is very low.

Identify and explain the different types of adjustments, including accruals and deferrals.

Understand the revenue recognition and matching principles.

Differentiate between accrual and cash basis of accounting.

Explain the role of adjusting entries in affecting financial statement accounts.

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Definitions:

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An interpersonal style that manifests itself in being socially astute and engaging in behaviors that lead to feelings of confidence, trust, and sincerity.

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The ability to understand and respond to the feelings, needs, and concerns of others, including recognizing social cues and appropriately adapting behavior.

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The assignment of formal authority and responsibility for accomplishing a specific task to another person.