Asked by
Rojen Ablen
on Nov 12, 2024Verified
Cost-plus methods determine the normal selling price by estimating a cost amount per unit and adding a markup.
Cost-Plus Methods
Pricing strategies where a fixed percentage or set amount is added to the production cost to determine the selling price of a product or service.
Markup
The amount added to the cost of goods to cover overhead and profit when determining the selling price.
- Identify the elements that affect pricing strategies, such as cost-plus and variable costing principles.
Verified Answer
HO
Learning Objectives
- Identify the elements that affect pricing strategies, such as cost-plus and variable costing principles.
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