When Using the Functional Cost Approach to Set Selling Prices

question 59

Multiple Choice

When using the functional cost approach to set selling prices, the markup must cover:

• A) Variable costs plus a reasonable return on investment
• B) Fixed costs plus a reasonable return on investment
• C) Period costs plus a reasonable return on investment
• D) None of these are correct

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Definitions:

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A scientist who studies how people’s thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.