Five Cost Concepts Are Important in Pricing Decisions: Total Cost,fixed

question 306

Multiple Choice

Five cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,unit variable cost,and __________.

• A)dividend cost
• B)liquidity cost
• C)discretionary cost
• D)marginal cost
• E)elastic cost

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Definitions:

Accounting Records

Documentation and books that capture all financial transactions of a business, company, or individual, providing a basis for financial statements and audits.

Cost of Goods Available

The total cost of inventory available for sale, calculated as the beginning inventory plus the cost of goods manufactured or purchased.

Overapplied Overhead

Occurs when the amount of overhead allocated to products exceeds the actual overhead incurred.

Cost of Goods Sold

The direct costs attributable to the production of the products sold by a company.