Holding All Other Things Constant, an Increase in Variable Selling

question 46

Multiple Choice

Holding all other things constant, an increase in variable selling costs 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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Definitions:

Personal Selling

A direct, one-on-one form of selling in which a salesperson uses skills and techniques to persuade a buyer to purchase a product or service.

Time

The ongoing sequence of events and the resource that can be managed, spent, saved, or wasted in activities or processes.

Extended Credit

A financial arrangement that allows a customer to purchase goods or services on account, paying for them at a later date.

Collection System

A process or network designed for gathering and transporting something, often used in the context of waste collection or receivables in finance.