Which of the Following Firms Is Most Likely to Use

question 100

Multiple Choice

Which of the following firms is most likely to use cost-plus pricing?

• A)A firm that makes one product.
• B)A firm that sells one product and has a sizable research and development budget.
• C)A firm that makes several products and has a sizable research and development budget, the cost of which cannot be easily assigned to each product.
• D)A firm that makes many products but has a small research and development budget, the cost of which can be easily assigned to the different product lines.

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Definitions:

Redeems

The act of exchanging something such as coupons, vouchers, or securities for goods, services, or money.

Gain

Financial benefit realized from activities such as the sale of an asset for more than its original purchase price.

Loss

A financial condition indicating that expenses have exceeded revenues, leading to a negative income.

Bonds Payable

Long-term liabilities on a company's balance sheet, representing debt obligations that the company must repay to bondholders at a specified date.