When making normal pricing decisions, management should consider:

Question

Quizplus · Accepted Answer

When making pricing decisions, management should consider the total cost of production and the markup that they want to add to ensure profitability. Considering only variable costs may result in underpricing, while considering only differential costs and markup amount may not take into account the total cost of production. Direct fixed costs are also an important consideration in pricing decisions. Therefore, choice C, which involves considering total costs and markup amount, is the best option.

When Making Normal Pricing Decisions, Management Should Consider