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Define "Cost-Plus" basic accounting using 2 research citations.

Define "Cost-Plus" basic accounting using 2 research citations.

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Cost plus accounting can be defined as that accounting approach in which price of a product or a service is derived by adding a mark-up to the cost of goods and services. This is done to arrive at the selling price of the product or the service being sold. This approach entails adding up of costs like direct materials cost, direct labor cost, and overhead costs for the given product and then adding a mark-up percentage on the amount so as to determine the selling price of the product.

Research citations:

(1): Dhalokia U. (July 12, 2018). When Cost-Plus Pricing Is a Good Idea. Retrieved from https://hbr.org/2018/07/when-cost-plus-pricing-is-a-good-idea

(2): Shivam N. Cost-Plus Price: Determination, Advantages and Criticisms. Retrieved from http://www.economicsdiscussion.net/firm/cost-plus-price-determination-advantages-and-criticisms-firms/21760

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