Regarding bid pricing:
A) the same overhead charges and profit rates should apply to all bids--to avoid legal problems.
B) most firms should try to bid for as many jobs as possible--to spread risk.
C) all business buyers are legally required to accept the lowest bid--if they ask for bids.
D) the big problem for sellers is estimating all the costs--including the variable and fixed costs--that apply to a particular job.
E) All of the above are true.

Question

Quizplus · Accepted Answer

The big problem for sellers is accurately estimating all the costs that apply to a particular job, including variable and fixed costs. Overhead charges and profit rates do not necessarily have to be the same for all bids, and it may not be feasible for most firms to bid on every job. Business buyers are not legally required to accept the lowest bid if they specifically request bids.

Regarding Bid Pricing