Question

A seller estimates the stand-alone selling price of goods using the expected cost plus margin approach. Using this method, the seller will estimate the cost of ______ and add an appropriate profit margin.

Answer 1

The cost of producing goods at the margin is estimated using the expected cost plus margin approach. The seller adds an appropriate profit margin to the estimated cost to determine the stand-alone selling price of the goods.

Step-by-step explanation:

The cost of producing goods at the margin is estimated using the expected cost plus margin approach. The cost includes various factors such as the cost of ingredients, equipment, rent, and wages. The seller then adds an appropriate profit margin to the estimated cost to determine the stand-alone selling price of the goods.