When Using the Absorption Approach to Cost-Plus Pricing Described in the Text

question 14

Multiple Choice

When using the absorption approach to cost-plus pricing described in the text:

• A)all costs are included in the cost base.
• B)the "plus" or markup figure contains fixed costs and desired profit.
• C)the cost base is made up of the unit product cost.
• D)only selling and administrative expenses are included in the cost base.

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Definitions:

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Peter Drucker was an Austrian-born American management consultant, educator, and author, whose writings contributed to the philosophical and practical foundations of the modern business corporation.

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