Under the variable cost-plus approach, the cost base includes all of the following EXCEPT
A)fixed manufacturing costs.
B)variable manufacturing costs.
C)total fixed costs.
D)variable selling and administrative costs.

Question

Quizplus · Accepted Answer

The variable cost-plus approach only considers the variable manufacturing costs (such as direct materials and direct labor) and variable selling and administrative costs as part of the cost base. Fixed manufacturing costs and total fixed costs are not included in the cost base for this approach.

Under the Variable Cost-Plus Approach, the Cost Base Includes All