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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