The Reasons for Using the Variable Cost-Plus Approach Include All

question 35

Multiple Choice

The reasons for using the variable cost-plus approach include all of the following except this approach:

• A)avoids arbitrary allocation of common fixed costs to individual product lines.
• B)is more consistent with cost-volume-profit analysis.
• C)provides the most defensible bases for justifying prices to all interested parties.
• D)provides the type of data managers need for pricing special orders.

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