The markup determined by management should be sufficient to earn:
A) manufacturing cost plus the selling and administrative expenses.
B) the desired profit plus cover any costs and expenses that are not included in the cost amount.
C) only costs and expenses that are not included in the cost amount.
D) only the desired profit.

Question

Quizplus · Accepted Answer

The markup determined by management should cover the desired profit as well as the costs and expenses that are not included in the cost amount. This ensures that the company is able to make a profit while also accounting for any additional expenses.

The Markup Determined by Management Should Be Sufficient to Earn