Managers who often make special pricing decisions are more likely to use which of the following cost concepts in their work?
A) Total cost
B) Product cost
C) Variable cost
D) Fixed cost

Question

Quizplus · Accepted Answer

Managers who make special pricing decisions are likely to consider the variable cost, which is the cost that varies proportionally with the level of production or sales. This allows them to determine the minimum price at which they can sell their product/service without incurring losses. The total cost (A) and fixed cost (D) may not be as relevant in this decision-making process, and the product cost (B) may include both fixed and variable costs, which may not provide managers with a precise estimate for pricing decisions.

Managers Who Often Make Special Pricing Decisions Are More Likely