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

question 132

Multiple Choice

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

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

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Definitions:

Negative Emotions

Feelings or emotions that are unpleasant or undesirable, such as sadness, anger, fear, or jealousy.

Cognitive Dissonance

A psychological phenomenon that occurs when an individual experiences mental discomfort due to holding contradictory beliefs, ideas, or values at the same time.

Social Loafing

A phenomenon where individuals exert less effort to achieve a goal when they work in a group compared to when they work alone.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.