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:

Metastatic Cancer

Cancer that has spread from the primary site of origin to different areas of the body through the lymph system or bloodstream.

Piece-Rate System

A pay system where employees are compensated based on the amount of work they complete, commonly used in manufacturing and production jobs.

Variable Interval Schedule

In operant conditioning, a reinforcement schedule where responses are rewarded after unpredictable time durations, leading to steady and consistent behavior.

Reinforcement

The process of encouraging or establishing a pattern of behavior through rewards or consequences.