The first step in the absorption-cost approach is to compute the
A) desired ROI per unit.
B) markup percentage.
C) target selling price.
D) unit manufacturing cost.

Question

Quizplus · Accepted Answer

The first step in the absorption-cost approach is to compute the unit manufacturing cost, which includes all direct and indirect costs incurred in creating a product. This cost serves as the basis for determining the desired ROI, markup percentage, and target selling price.

The First Step in the Absorption-Cost Approach Is to Compute