With the time and material pricing method, the hourly time charge is typically set to:
A)the hourly labour cost.
B)the hourly labour cost + annual overhead.
C)the hourly labour cost + an hourly overhead charge + an hourly charge to cover the profit margin.
D)annual overhead + an hourly charge to cover the profit margin.
E)the hourly labour cost + an hourly charge to cover the profit margin.

Question

Quizplus · Accepted Answer

The time and material pricing method typically includes the hourly labor cost, an hourly overhead charge, and an hourly charge to cover the profit margin to ensure all costs and desired profits are accounted for.

With the Time and Material Pricing Method, the Hourly Time