Different Firms in the Same Line of Business Are Likely

question 198

Multiple Choice

Different firms in the same line of business are likely to use the same markup percent:

• A) because they all want to have the same selling price.
• B) because this is a government requirement.
• C) because they are likely to have similar operating expenses.
• D) because this is what is acceptable to manufacturers.
• E) only if they are in pure competition.

---

Definitions:

Spending

The act of utilizing financial resources to purchase goods, services, or assets, or to cover operating costs.

Cost Aggregation

The process of combining individual costs or expenses to form a summary total.

Subtotaling Costs

The process of summing up individual costs to create a comprehensive total before final totals or further calculations.

EAC

"Estimate At Completion" - a forecast of the total cost of a project at its conclusion, accounting for all known risks and variables.