alleryStart learning →Cost-plus pricing is uncommon in which kind of market?
AResearch contracts
BLocal retail shops
CPerfectly competitive
DGovernment contracts
Answer & Solution
Correct answer: C. Perfectly competitive
In near perfect competition price is set where marginal cost equals marginal revenue, not by markup.
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Related questions
Cost accounting is mainly concerned with information for whom?How does factory rent behave as output changes?Depreciation of factory equipment is classed as which overhead?How are indirect costs assigned to cost objects?Lubricants used to keep machines running are classed as what?Which of these is a direct material?The markup in cost-plus pricing is meant to give what?Unit cost is Rs 250 and the markup is 8 percent of cost. Selling price?