Cost-Plus Pricing Is So Named Because All Costs--Production,selling,and Administrative--Are Included

question 23

True/False

Cost-plus pricing is so named because all costs--production,selling,and administrative--are included in the cost base from which a target selling price is derived.

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Definitions:

Specific Purpose

The precise goal or objective that an individual, group, or organization aims to achieve within a defined timeline.

Policy

A standing plan that communicates broad guidelines for decisions and action.

Procedure

A sequence of actions or steps taken to achieve a particular end.

Broad Guideline

General principles or recommendations that provide direction without being overly prescriptive or detailed.