Consider the Following Statements Regarding Cost-Plus Pricing Formulas

question 30

Multiple Choice

Consider the following statements regarding cost-plus pricing formulas.i.Full cost pricing formulas have the advantage of keeping the manager's attention focused on covering total costs
ii.With cost-plus pricing formulas,management must consider market conditions and likely actions of competitors.
iii.Variable cost-plus formulas have the advantage of not obscuring important information about cost behaviour.Which of the above statements is/are true?

• A) i
• B) ii and iii
• C) i and iii
• D) All of the given answers

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic, often applied to thought processes and decision-making.

True Beliefs

Convictions or acceptances that are in accordance with reality or facts.

Coherent

The quality of being logical and consistent.

Rationalists

Philosophers who believe that the primary source of knowledge is reason and logical analysis, rather than sensory experiences.