Which of the Following Is Not True When Determining the Selling

question 18

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 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:

Dependent Variable

The variable in a study that is expected to change in response to changes in the independent variable, often measured to assess the effect of a treatment.

Experimental Group

The group in an experiment that receives the treatment or condition being tested, as opposed to the control group.

Control Group

In scientific research, a group of subjects that does not receive the experimental treatment and is used as a baseline to compare the effects of the treatment.

Low-Fat Diet

A nutrition plan focusing on reducing the intake of fats, particularly saturated fats and trans fats, for health reasons.