In using the product cost concept of applying the cost-plus approach to product pricing, selling expenses, administrative expenses, and profit are covered in the markup.

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Quizplus · Accepted Answer

The cost-plus approach to product pricing involves adding a markup to the product's cost to cover selling expenses, administrative expenses, and profit. Therefore, in using the product cost concept of applying this approach, these expenses are covered in the markup.

In Using the Product Cost Concept of Applying the Cost-Plus