Check my work Which of the following statements about cost-plus pricing is most accurate?...

50.1K

Verified Solution

Question

Accounting

Check my work
Which of the following statements about cost-plus pricing is most accurate?
Multiple Choice
Cost-plus pricing guarantees a company a specific dollar amount of profits only if costs are kept to a given level.
There is little or no incentive to cut costs after winning a contract under cost-plus pricing because there is a direct correlation between costs and profits.
Companies that are competing for business using a cost-plus contract are incentivized to set prices high in an effort to win the contrct.
Once a company secures a contract under cost-plus pricing, there is extreme pressure to cut costs.
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students