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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Definitions:

Action System

An organizational concept in sociology and systems theory used to describe and analyze social behaviors and structures.

Structural Location

The position or place of something within an organized system or framework, often influencing its role or function.

Status-Role Complex

A concept in sociology that describes how an individual's status (social position) comes with associated roles (expected behaviors) that guide interactions and identity.

Functional Prerequisite

Essential conditions or requirements that systems (e.g., social, biological) need to meet in order to survive and maintain stability.