Which statement best describes full-cost pricing?
A) It allocates only those fixed costs that can be directly attributed to production.
B) It explicitly considers demand and competition.
C) It uses all relevant variable costs in setting the product's price.
D) It relates overhead expenses to expected revenue.

Question

Quizplus · Accepted Answer

Full-cost pricing involves considering all relevant costs in setting the price of a product, including both fixed and variable costs, rather than just direct costs or considering market demand and competition factors.

Which Statement Best Describes Full-Cost Pricing