Consider the following statements about absorption-cost pricing formulas:I. Absorption-cost formulas consider a company's fixed manufacturing costs when establishing a selling price.
II. Absorption-cost formulas are often justified on the grounds that a company must cover all of its costs in the long run.
III. Absorption-cost data are the type that managers need when facing certain pricing decisions, such as whether or not to accept a special order.
Which of the above statements is (are) true?
A. II only.
B. I, II, and III.
C. I and III.
D. I and II.
E. II and III.
Answer: D
You might also like to view...
Which of the following product types is typically distributed by using wholesalers?
A) consumer packaged goods B) jewelry C) watches D) automobiles
Which of the following statements is true?
a. The supervisor should maintain only positive documentation about employee performance. b. The supervisor should maintain only negative documentation about employee performance. c. The supervisor should maintain positive, negative, and neutral documentation about employee performance. d. None of the above are true
If the second goal was to produce no more than 80 units of product two, the objective function would be:
A) Min P1d1- + P1d2-, P2d3-. B) Min P1d1+ + P1d2-, P2d3-. C) Min P1d1- + P1d2+, P2d3-. D) Min P1d1- + P1d2-, P2d3+.
Providing quick service is an important aspect of quality customer service
Indicate whether this statement is true or false.