Which of the following is the first step in cost analysis for pricing decisions?
A) Estimating how cost varies with the volume of sales
B) Analyzing the cost competitive advantage of the product
C) Determining the components of the cost of the product
D) Estimating how much control management has over costs

Question

Quizplus · Accepted Answer

Determining the components of the cost of the product is the first step in cost analysis for pricing decisions. This involves identifying all the direct and indirect costs associated with producing and selling the product. Only by knowing these costs can a business determine a profitable pricing strategy.

Which of the Following Is the First Step in Cost