Sunday, September 18, 2011

Which of the following statements is FALSE regarding cost-plus pricing?

ACCOUNTING

Multiple Choice

Which of the following statements is FALSE regarding cost-plus pricing?

a. A company selects a cost base that it regards as reliable.

b. A company uses a markup percentage that estimates a product price that covers full product costs and earns the required return on investment.

c. The selling price computed is only a prospective price.

d. The cost-plus price chosen has already been studied for customer reaction to the price.

Click here for the SOLUTION

No comments:

Post a Comment