When making decisions for product mix and pricing, the focus should be on total costs and not unit costs.

Question

Quizplus · Accepted Answer

When making decisions for product mix and pricing, it is important to consider the total costs involved in producing and selling a product, rather than simply focusing on the unit cost. This is because unit costs do not give an accurate representation of the true cost of a product, as they do not take into account factors such as overhead expenses and fixed costs. In order to effectively set prices and select a product mix, businesses need to have a clear understanding of their total costs and how these costs impact their profitability.

When Making Decisions for Product Mix and Pricing, the Focus