If a company uses a cost-plus approach to pricing, it will find:
A. it is in violation of generally accepted accounting principles (GAAP).
B. there are several different definitions of cost and the higher the cost, the higher the markup percentage.
C. there is one definition of cost, and there is no relationship between cost and the markup percentage used.
D. there are several different definitions of cost and the higher the cost, the lower the markup percentage.
E. there is one definition of cost, and there is no markup percentage with the cost-plus approach.
Answer: D
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