The Correct Expression for Cost Plus Pricing Is

question 14

Multiple Choice

The correct expression for cost plus pricing is

• A)Price = Cost (1 + profit margin).
• B)Price = Cost + profit margin.
• C)Price = Cost (1 + mark-up).
• D)Price = Cost + (1 + mark-up).

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Definitions:

Guaranty

A legal commitment by one party to assume responsibility for the debt obligation of a borrower if that borrower defaults.

Enforceable

A legal term referring to a contract or agreement that can be upheld and compelled by law.

Parol Evidence Rule

A legal principle that prevents parties from using oral or extrinsic evidence to contradict or vary the terms of a written contract.