
Managerial Accounting for Managers
4th Edition
ISBN: 9781259578540
Author: Eric Noreen, Peter C. Brewer Professor, Ray H Garrison
Publisher: McGraw-Hill Education
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Chapter A, Problem A.5Q
To determine
Concept introduction:
Pricing strategies indicate the method of calculation of the price of a product or service. Some pricing strategies take cost as a basis and add a margin to calculate the price, for example, cost-plus pricing. Some pricing policies take sales price as a basis and make a target for the cost, for example, target costing.
To indicate: when absorption costing approach to cost-plus pricing is used and what is covered by markup.
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Milissa Rivera bought 500 shares of Purple Tech Industries for $92 per share. He paid a commission of $85 when he purchased this stock. He sold the stock 4 years later for $118 per share. When he sold it, he paid a commission of $90. While he held the stock, it paid a dividend of $3.75 per share. What was Milissa's total dollar return on this stock?
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Cost control, Why cost control is necessary for a business?; Author: Educationleaves;https://www.youtube.com/watch?v=yMg3gJx48Fg;License: Standard youtube license