Heathrow employs cost-plus pricing formulas to derive selling prices for its various products. If the formulas are all used correctly, which of the following cost bases will result in the highest selling price?
A)Variable manufacturing cost.
B)Absorption manufacturing cost.
C)Total variable cost.
D)Total cost.
E)They could all result in the same selling price as long as their markup percentages are different.

Question

Quizplus · Accepted Answer

The Answer of Heathrow employs cost-plus pricing formulas to derive selling prices for its various products. If the formulas are all used correctly, which of the following cost bases will result in the highest selling price?
A)Variable manufacturing cost.
B)Absorption manufacturing cost.
C)Total variable cost.
D)Total cost.
E)They could all result in the same selling price as long as their markup percentages are different.

Heathrow Employs Cost-Plus Pricing Formulas to Derive Selling Prices for Its