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.
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