If a Company Has Excess Capacity, Which of the Following

Multiple Choice

If a company has excess capacity, which of the following is a sensible bidding strategy?

A) Set a price to cover all costs.
B) Base the bid on the incremental costs incurred because the job will contribute towards the company's cost and profit.
C) Base the bid solely on direct labour hours.
D) Downplay the potential impact of competitors.
E) Allocate common fixed costs to individual jobs before preparing the bid.