Under the variable cost method, only variable costs are included in the cost amount per unit to which the markup is added.

Name: Under the variable cost method, only variable costs are included in the cost amount per unit to which the markup is added.
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Question

Quizplus · Accepted Answer

Under the variable cost method, only variable costs are considered in determining the cost per unit, and then a markup is added to these costs to set the selling price. Fixed costs are not included in the cost per unit calculation in this method.

Under the Variable Cost Method, Only Variable Costs Are Included