The basic formula for _____ is Price = Direct costs + Overhead + Profit margin.
A. Contribution margin
B. Return on investment
C. Cost-based pricing
D. ABC costing
E. Net profit
Answer: C. Cost-based pricing
The basic formula for _____ is Price = Direct costs + Overhead + Profit margin.
A. Contribution margin
B. Return on investment
C. Cost-based pricing
D. ABC costing
E. Net profit
Answer: C. Cost-based pricing