With Cost-Oriented Approaches to Pricing, a Price Setter Stresses the __________

question 177

Multiple Choice

With cost-oriented approaches to pricing, a price setter stresses the __________ side of the pricing problem, not the __________ side.

• A)cost; revenue
• B)cost; demand
• C)cost; profit
• D)cost; supply
• E)cost; service

---

Definitions:

Overhead Costing Systems

Methodologies used to allocate indirect costs (overhead) to products or services, which may vary depending on the costing approach (e.g., traditional costing or activity-based costing).

Overhead Allocation Base

A metric used to assign indirect costs to cost objects, often based on time, labor, or machine hours.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire factory or plant, applied to all production units irrespective of the department in which they were produced.