The ________ approach is useful for short-run pricing decisions and the ________ approach is useful for long-run pricing decisions.
A) contribution; absorption
B) absorption; contribution
C) full costing; target costing
D) full costing; contribution

Question

Quizplus · Accepted Answer

The contribution approach, which focuses on covering variable costs and contributing to fixed costs and profits, is more suited for short-run pricing decisions. The absorption approach, which includes all fixed and variable costs in product pricing, is better for long-run decisions to ensure all costs are covered.

The ________ Approach Is Useful for Short-Run Pricing Decisions and the ________

The Approach Is Useful for Short-Run Pricing Decisions and the