In a Cost-Plus Approach to Pricing

Multiple Choice

In a cost-plus approach to pricing:

A) there is an inverse relationship between the magnitude of the cost basis and the markup percentage.
B) there is a direct relationship between the magnitude of the cost basis and the markup percentage.
C) the cost basis used must include fixed manufacturing overhead.
D) "plus" refers to the addition of allocated administrative overhead to the direct manufacturing costs.
E) "plus" refers to the addition of allocated fixed manufacturing overhead to the variable manufacturing costs.