When Can a Firm Justify the Use of Full Costs

question 168

Multiple Choice

When can a firm justify the use of full costs for pricing decisions?

• A)when a firm enters into a short term contractual relationship to supply a product.
• B)for development and production of standardized products.
• C)when managers initially set prices to cover full costs plus a profit then adjust to reflect market conditions.
• D)because they are required by generally accepted accounting principles.

---

Definitions:

Perceptions

The process of organizing, interpreting, and making sense of sensory information.

Work Arrangement

The specific setup or organization of work roles and schedules, including aspects like telecommuting and flexible hours.

Flexibility

The capacity to adapt, change, and be versatile in thoughts, actions, or decisions in response to varying situations or demands.

Motivational Practices

Strategies or approaches used to inspire and encourage individuals or teams to achieve their goals.