A full-cost formula for pricing does not require the management accountant to perform a detailed analysis of cost-behavior patterns to separate product costs into variable and fixed components.

Question

Quizplus · Accepted Answer

A full-cost formula for pricing incorporates all costs, both variable and fixed, into the price calculation. This means that the management accountant does not need to separate product costs into variable and fixed components, which is typically required for a variable-cost formula.

A Full-Cost Formula for Pricing Does Not Require the Management