_____ is most often used to describe the pricing of jobs that are nonroutine and difficult to "cost" in advance.
A)Target costing
B)Rate-of-return pricing
C)Marked pricing
D)Cost-plus pricing

Question

Quizplus · Accepted Answer

Cost-plus pricing is most often used for jobs that are nonroutine and difficult to "cost" in advance because it allows the company to ensure that they will make a profit on the job, even if unexpected costs arise during the project. The company adds a markup (percentage or dollar amount) to the estimated cost of the project to arrive at the final price. This method is often used in industries such as construction, engineering, and custom manufacturing. Target costing is used for routine products, rate-of-return pricing is used for determining the price to earn a desired rate-of-return, and marked pricing is not a commonly used pricing method.

_____ Is Most Often Used to Describe the Pricing of Jobs