Under the variable cost concept, only variable costs are included in the cost amount per unit to which the markup is added.

Name: Under the variable cost concept, only variable costs are included in the cost amount per unit to which the markup is added.
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Question

Quizplus · Accepted Answer

The variable cost concept only includes variable costs in the cost amount per unit, meaning that fixed costs are not included in this calculation. This cost is then marked up to determine the selling price per unit.

Under the Variable Cost Concept, Only Variable Costs Are Included