Holding All Other Things Constant, an Increase in Fixed Selling

question 41

Multiple Choice

Holding all other things constant, an increase in fixed selling costs will affect:

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

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Definitions:

Mastication

The process of chewing food in preparation for swallowing and digestion.

Segmental Contractions

Contraction of small segments of the intestinal tract that aids in mixing and propelling contents within the gastrointestinal system.

Nutrients

Substances required by the body for growth, repair, and maintaining health, including vitamins, minerals, carbohydrates, proteins, and fats.

Digestive Tract

The series of hollow organs joined in a long, twisting tube from the mouth to the anus through which food is digested and nutrients are absorbed.