Which of the following statements is FALSE regarding cost-plus pricing?
A) The selling price computed is only a prospective price.
B) A company uses a mark-up percentage that estimates a product price that covers full product costs and earns the required return on investment.
C) A company selects a cost base that it regards as reliable.
D) The cost-plus price chosen has already been studied for customer reaction to the price.
Correct Answer:
Verified
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