Lassie Company Uses Cost-Plus Pricing and Has Calculated Total Variable

question 15

Multiple Choice

Lassie Company uses cost-plus pricing and has calculated total variable manufacturing cost, total absorption manufacturing cost, and total cost for one of its products. Which of these costs would be the smallest?

• A) Total variable manufacturing cost.
• B) Total absorption manufacturing cost.
• C) Total cost.
• D) There is no difference between total absorption manufacturing cost and total cost.
• E) More information is needed to correctly answer the question.

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