When Using the Product Cost Method of Applying the Cost-Plus

question 23

Multiple Choice

When using the product cost method of applying the cost-plus approach to product pricing, which of the following is included in the markup?

• A)desired profit
• B)total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
• C)total costs plus desired profit
• D)total selling and administrative expenses plus desired profit

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Definitions:

Amino Acids

Organic compounds that serve as the building blocks of proteins, containing both an amino group and a carboxyl group.

Codons

Sequences of three nucleotides in mRNA that specify the addition of a specific amino acid into a polypeptide chain during protein synthesis.

Anticodons

The three-nucleotide sequences on tRNA that are complementary to the codons on mRNA, important for the translation phase of protein synthesis.

mRNA

Messenger RNA (mRNA) is a type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.