Cost-Plus Pricing Refers to

question 134

Multiple Choice

Cost-plus pricing refers to

• A) summing the total unit cost of providing a product or service and adding a specific amount to the cost to arrive at the price.
• B) setting the price of a line of products at a number of different price points.
• C) adding a fixed percentage to the cost of all items in a specific product class.
• D) setting prices to achieve a profit that is a specified percentage of the sales volume.
• E) increasing the price slightly to protect against undue profit losses from unforeseen environmental forces.

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Definitions:

Bank Reconciliation

The process of comparing a company’s financial records and balance with its bank statement to ensure consistency and accuracy in the recorded transactions.

Journal Entry

A record in the accounting journal that represents a single business transaction through the debit and credit of financial accounts.

Bank Service Charge

Fees charged by a bank to a customer for account maintenance and other banking services.

Deposits In Transit

Funds that have been sent to a bank but not yet recorded in the bank's records, typically due to timing differences.