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

question 57

Multiple Choice

The markup percentage in the absorption-cost approach is computed 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.

---

Definitions:

Monozygotic Twins

Twins that develop from a single fertilized egg and are genetically identical.

Dizygotic Twins

Also known as fraternal twins, these are two siblings born at the same time who have developed from two different eggs fertilized by two different sperm cells.

Homozygous

Describes an organism with two identical alleles for a particular trait or gene.

Heterozygous

Possessing two different alleles of a gene, one inherited from each parent, resulting in variation of a genetic trait.