Product costs used for pricing and product-mix decisions generally include:
A)manufacturing costs only
B)design costs plus manufacturing costs
C)all costs incurred along the value chain
D)distribution costs only

Question

Quizplus · Accepted Answer

Product costs used for pricing and product-mix decisions should include all costs incurred along the value chain, including manufacturing costs, design costs, and distribution costs. This is because all of these costs play a role in determining the total cost of producing and delivering a product to the customer. By considering all of these costs, a company can make more accurate pricing and product-mix decisions that take into account the true profitability of each product or product line.

Product Costs Used for Pricing and Product-Mix Decisions Generally Include