What costs can be justified when a firm enters into a long-term contractual relationship to supply a product?
A)Variable costs
B)Fixed costs
C)Full costs
D)Absorption costs

Question

Quizplus · Accepted Answer

Full costs, which include both fixed and variable costs, can be justified when entering into a long-term contractual relationship to ensure all expenses are covered in the pricing strategy.

What Costs Can Be Justified When a Firm Enters into a Long-Term