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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