Under the time and material pricing method, a customer would be charged for:
A)material costs.
B)material and labour costs.
C)material, labour, and overhead costs.
D)material and labour costs, plus a profit margin.
E)material, labour, and overhead costs, plus a profit margin.

Question

Quizplus · Accepted Answer

Under the time and material pricing method, the customer is charged for not only the material and labour costs but also the overhead costs incurred by the supplier. Therefore, option E, material, labour and overhead costs plus profit margin, is the correct answer.

Under the Time and Material Pricing Method, a Customer Would