In applying the cost-plus method of pricing, full cost refers to
A) product cost.
B) both variable production and variable selling and administrative costs.
C) total production and selling and administrative costs.
D) total fixed production and selling and administrative costs.

Question

Quizplus · Accepted Answer

Full cost in the cost-plus pricing method includes all production costs as well as selling and administrative expenses, both fixed and variable.

In Applying the Cost-Plus Method of Pricing, Full Cost Refers