Which of the following methods of applying the cost-plus approach to product pricing includes only total manufacturing costs in the cost amount to which the markup is added?
A)variable cost method
B)total cost method
C)product cost method
D)all of these choices

Question

Quizplus · Accepted Answer

The product cost method includes only total manufacturing costs (direct materials, direct labor, and manufacturing overhead) in the cost amount to which the markup is added, excluding non-manufacturing costs like selling and administrative expenses.

Which of the Following Methods of Applying the Cost-Plus Approach