When Making Pricing Decisions Managers Should Include Fixed Cost Per

question 89

Multiple Choice

When making pricing decisions managers should include fixed cost per unit in the cost because ________.

• A) it leads to reporting higher operating income for the period
• B) it allows managers to report positive contribution as long as prices are above variable costs
• C) in the long run, the price of a product must exceed the full cost of the product
• D) it requires the management accountant to perform a detailed analysis of cost-behavior patterns to separate product costs into variable and fixed components

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Definitions:

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