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