The Marginal Cost Method of Pricing Considers the Direct Costs

question 29

Multiple Choice

The marginal cost method of pricing considers the direct costs of producing and selling products for export as the floor beneath which prices cannot be set.What costs need to be excluded in these direct costs?

• A) Variable costs and product costs
• B) Shipment costs and manufacturing costs
• C) Fixed costs, R&D, and domestic overhead
• D) Inventory costs and production costs

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Definitions:

Earned Income Credit

A repayable tax incentive aimed at individuals and families of low to moderate income who are employed, especially those with children.

EIC Formula

The calculation method used to determine the Earned Income Credit, a refundable tax credit for low to moderate-income working individuals and families.

Earned Income

Income derived from active participation in a business, including wages, salaries, tips, and net earnings from self-employment.

Elderly or Disabled

Elderly or Disabled refers to tax terms that qualify individuals for certain tax deductions or credits based on their age, typically over 65, or if they have a qualifying permanent disability.