Which of the Following Is Not True When Determining the Selling

question 18

Multiple Choice

Which of the following is not true when determining the selling price for a product?

• A) Absorption costing should be used to determine routine pricing which includes both fixed and variable costs.
• B) As long as the selling price is set above the variable costs,the company will make a profit in short run.
• C) Variable costing is effective when determining short run decisions,but absorption costing is only used for long-term pricing policies.
• D) Both variable and absorption pricing plans should be considered,to include several pricing alternatives.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involved in instinct and mood control. It regulates fundamental emotions and drives, such as pleasure, fear, and anger.

Brain Stem

The brain stem is the lower extension of the brain, connected to the spinal cord, responsible for controlling essential life-sustaining functions like breathing and heart rate.

Cerebral Cortex

The outer layer of the cerebrum in the brain, involved in high-level functions such as sensory perception, reasoning, and voluntary muscle activity.

Sympathetic Nervous System

Part of the autonomic nervous system that activates what is often termed the fight or flight response.