Collins Company Uses Cost-Plus Pricing and Has Calculated Total Variable

question 107

Multiple Choice

Collins Company uses cost-plus pricing and has calculated total variable manufacturing cost, total absorption manufacturing cost, and total cost for one of its products. Which of these costs would be the smallest?

• A) Total variable manufacturing cost.
• B) Total absorption manufacturing cost.
• C) Total cost.
• D) There is no difference between total absorption manufacturing cost and total cost.
• E) More information is needed to correctly answer the question.

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Definitions:

Mucus

Viscous secretion produced by and covering mucous membranes; lubricates mucous membranes and traps foreign substances.

Prostate Gland

A gland in the male reproductive system that produces a fluid component of semen.

Secretions

Substances produced and released by cells or glands, which serve various functions in the body, such as lubrication, digestion, and signaling.

Fibrinolysin

Fibrinolysin is an enzyme that breaks down fibrin, a protein involved in blood clotting, thereby playing a role in the process of blood clot removal.