What Cost Concept Used in Applying the Cost-Plus Approach to Product

question 126

Multiple Choice

What cost concept used in applying the cost-plus approach to product pricing includes only total manufacturing costs in the cost amount to which the markup is added?

• A) variable cost concept
• B) total cost concept
• C) product cost concept
• D) opportunity cost concept

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Definitions:

Misinterpreted

To understand or interpret incorrectly; to draw the wrong conclusion from.

Abbreviation

A shortened form of a word or phrase used to simplify communication.

Silent P

A linguistic occurrence where the letter "P" is not pronounced in certain words, like "pneumonia".

Combining Form

In language, a form of a word that is used in combination with another form to make a new word, often used in medical terms.