Which of the following statements is most correct with respect to chargeout rates?
A) A chargeout rate is always set to cover the cost of labour and overheads and the required profit margin.
B) If the firm does not base its chargeout rate on costs, it will not survive.
C) A chargeout rate is typically set to cover costs of materials, labour and overhead only.
D) A chargeout rate is typically set to cover costs, but may be varied in the short term to match competitors' actions.

Question

Quizplus · Accepted Answer

Chargeout rates are generally set to cover costs, but they can be adjusted in the short term to respond to market conditions and competitors' pricing strategies.

Which of the Following Statements Is Most Correct with Respect