If the cost base is $350 and the markup component is 11% then prospective selling price will be __________?
Correct answer: A. 388.5
- A. 388.5
- B. 350
- C. 362
- D. 368.5
Explanation
A markup of 11% on a $350 cost base is $38.50, so the prospective selling price is $350 + $38.50 = $388.50. Equivalently, multiply the cost base by 1.11.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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