Which of the following is true of price bidding with the federal government?
A) the price can only cover direct costs
B) the price can only cover direct costs and marketing costs
C) the price is based on costs that include fully allocated manufacturing and design costs but not include marketing costs
D) the price can include only fixed manufacturing costs and design costs but not include marketing costs

Question

Quizplus · Accepted Answer

Price bidding with the federal government is based on costs that include fully allocated manufacturing and design costs but do not include marketing costs. This means that the price can cover both direct and indirect costs that are necessary to produce the product or service. However, marketing costs are not included as they are seen as an optional expense that is not directly related to the production of the product or service.

Which of the Following Is True of Price Bidding with the Federal