The Markup Percentage in the Absorption-Cost Approach Is Calculated by Dividing

question 5

Multiple Choice

The markup percentage in the absorption-cost approach is calculated by dividing the sum of the desired ROI per unit and

• A)fixed costs per unit by manufacturing cost per unit.
• B)fixed costs per unit by variable costs per unit.
• C)selling and administrative expenses per unit by manufacturing cost per unit.
• D)selling and administrative expenses per unit by variable costs per unit.

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Definitions:

Forgone Income

Income that is lost when an individual chooses not to engage in a certain activity or job, representing an opportunity cost.

Part-time Job

Employment with fewer hours per week than a full-time position, often offering flexibility but with lesser benefits.

Professional Baseball Game

A regulated and officially sanctioned sport event featuring teams of professional baseball players.

Transportation

The process or business of moving goods and people from one place to another.