The Two Forms of Cost-Plus Pricing Are

question 266

Multiple Choice

The two forms of cost-plus pricing are

• A)cost-plus-fixed-fee pricing and cost-plus-variable-fee pricing.
• B)cost-plus-ROI pricing and cost-minus-ROI pricing.
• C)target return on sales pricing and target return on investment pricing.
• D)cost-plus-percentage-of-cost pricing and cost-plus-fixed-fee pricing.
• E)dynamic pricing and flexible pricing.

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Definitions:

Capital

Financial assets or resources owned by an individual or organization, particularly those used to generate income or investment.

Adjusting Journal Entries

Journal entries that are needed in order to update specific ledger accounts to reflect correct balances at the end of an accounting period.

Worksheet

A tool used in accounting to consolidate all of the financial information and to prepare adjusting entries and financial statements.

Account Balances

The amount of money in an account at a specific point in time, reflecting the difference between debits and credits.