The Practice of Adding a Percentage of Specified Dollar Amount-Or

question 93

Multiple Choice

The practice of adding a percentage of specified dollar amount-or markup-to the base cost of a product to cover unassigned costs and to provide a profit is called _____ pricing.

• A)full-cost
• B)breakeven
• C)incremental-cost
• D)cost-plus

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Definitions:

Modified Accelerated Cost Recovery System (MACRS)

A method of depreciation used for tax purposes in the United States, allowing businesses to recover investments in certain property through deductions over a specified life.

Equipment

Tangible physical assets used in the operation of a business, such as machinery, computers, or tools.

Buildings

Structures that are constructed for residency, business, storage, or other purposes, recognized as fixed assets on a balance sheet.

Marketing Analyses

Comprehensive evaluations that use market data, trends, and strategies to identify the viability of a new product, the effectiveness of a marketing plan, or the potential for market growth.