Four Cost Concepts Are Important in Pricing Decisions: Total Cost

question 151

Multiple Choice

Four cost concepts are important in pricing decisions: total cost, variable cost, unit variable cost, and

• A) dividend cost.
• B) liquidity cost.
• C) discretionary cost.
• D) fixed cost.
• E) elastic cost.

Comprehend the principles of activity-based costing (ABC) and differentiate between traditional and ABC costs.

Analyze the impact of costing methods on product costing.

Identify differences in overhead application between traditional and activity-based costing systems.

Determine activity rates for cost pools under activity-based costing.

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Definitions:

Telecommuter

An individual who works remotely, often from home, using technology to perform their job and communicate with colleagues and clients.

Telecommuter

A person who works remotely, often from home, utilizing internet, telephone, and other technologies to perform their job outside of a traditional office.

Passed Over For Promotion

The situation in which an individual is not chosen for a higher position or advancement within their organization, despite potentially being a qualified or eligible candidate.

Mental Output

The results or products of mental activities such as thinking, problem-solving, and creativity.