Using Full Costs for Pricing Decisions Can Be Justified in Which

question 79

Multiple Choice

Using full costs for pricing decisions can be justified in which of the following circumstances?

• A)When a firm enters into a long-term contractual relationship to supply a product.
• B)For development and production of customized products and contracts with the government.
• C)When managers initially set prices to cover full costs plus a profit then adjust to reflect market conditions.
• D)All of the answers are correct.

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Definitions:

Slash (/)

A punctuation mark used for various purposes, including indicating divisions, fractions, dates, or as a separator in file paths.

Primary Sort Key

The main attribute or field used to order data in a sorting operation, typically within databases or spreadsheets.

Amount Paid

The total sum of money dispensed for goods or services.

Asterisk (*)

A symbol used to denote multiplication in mathematics, to indicate a footnote or special note in text, or to mask letters in sensitive words.