What cost concept used in applying the cost-plus approach to product pricing includes total manufacturing costs and total selling and administrative expenses in the "cost" amount to which the markup is added?
A) Variable cost concept
B) Total cost concept
C) Product cost concept
D) Opportunity cost concept

Question

Quizplus · Accepted Answer

The total cost concept includes both manufacturing costs and selling and administrative expenses in the cost amount used for markup. This approach ensures that all costs related to producing and selling the product are accounted for in setting the price.

What Cost Concept Used in Applying the Cost-Plus Approach to Product