When making a long-term cost plus pricing decision,a company should consider:
A) The upstream research and development cost.
B) The allocated portion of facility-level cost.
C) The direct manufacturing cost.
D) All of these answers are correct.

Question

Quizplus · Accepted Answer

When making a long-term cost plus pricing decision, a company should consider all the given options – the upstream research and development cost, the allocated portion of facility-level cost, and the direct manufacturing cost. This will allow the company to accurately determine the total cost of producing and selling a product or service and make an informed decision about pricing to ensure profitability in the long run.

When Making a Long-Term Cost Plus Pricing Decision,a Company Should