When a Seller's Costs Are Usually Determined During or After

question 156

Multiple Choice

When a seller's costs are usually determined during or after a product is made and then a specified percentage or dollar amount is added to the cost to establish a price, an organization is using ____ pricing.

• A)markup
• B)demand-based
• C)differential
• D)cost-plus
• E)expensed-based

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Definitions:

One Year

A period of twelve consecutive months used as a standard measure of time for accounting, budgeting, and financial reporting.

Operating Cycle

The duration of time it takes for a business to buy inventory, sell it to customers, and collect the cash from the sales.

Mandatory Payroll Deductions

Compulsory deductions from an employee's paycheck by the employer, covering taxes, social security, and other legally required withdrawals.

Voluntary Deductions

Amounts that a person chooses to have withheld from their paycheck, such as contributions to retirement plans or health insurance premiums.