A service organisation may take into consideration all of the following costs when using the cost-based pricing, except:
A)semi-variable costs
B)marginal costs
C)fixed costs
D)opportunity costs
E)variable costs

Question

Quizplus · Accepted Answer

Opportunity Costs are not included in cost-based pricing as they represent the cost of forgoing an alternative opportunity, and do not relate to actual production or operational costs incurred by the service organization. The other options (A, B, C, E) are all types of costs that can be taken into consideration when using cost-based pricing.

A Service Organisation May Take into Consideration All of the Following