Holding All Other Things Constant, an Increase in the Company's

question 59

Multiple Choice

Holding all other things constant, an increase in the company's required return on investment (ROI) will affect:

• A)the selling price under the absorption costing approach to cost-plus pricing.
• B)the profit-maximizing price.
• C)both the selling price under the absorption costing approach to cost-plus pricing and the profit-maximizing price.
• D)neither the selling price under the absorption costing approach to cost-plus pricing nor the profit-maximizing price.

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