Which of the Following Is Not True When Determining the Selling

question 36

Multiple Choice

Which of the following is not true when determining the selling price for a product?

• A)Absorption costing should be used to determine routine pricing which includes both fixed and variable costs.
• B)As long as the selling price is set above the variable costs, the company will make a profit in the short run.
• C)Variable costing is effective when determining short-run decisions, but absorption costing is only used for long-term pricing policies.
• D)Both variable and absorption pricing plans should be considered, to include several pricing alternatives.

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Definitions:

Social System

An organized set of interrelated structures that establishes how society or a part of it organizes and functions.

Family Therapy

Therapy that treats the family as a system. Views an individual’s unwanted behaviors as influenced by, or directed at, other family members.

Cognitive Therapy

A form of psychotherapy that focuses on changing negative patterns of thinking to improve emotional well-being and adjust behavior.

Psychotherapists

Professionals who treat mental health problems and human distress through psychological techniques and therapies rather than medical means.