Four cost concepts are important in pricing decisions: total cost,fixed cost,variable cost,and __________.
A)dividend cost
B)liquidity cost
C)discretionary cost
D)unit variable cost
E)elastic cost

Question

Quizplus · Accepted Answer

The fourth cost concept that is important in pricing decisions is unit variable cost. This refers to the cost that varies with the level of production or sales, such as materials, labor, and direct overhead costs. Knowing the unit variable cost is crucial in determining the break-even point and setting appropriate pricing strategies. A, B, and C are not relevant to pricing decisions.

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