A full-cost base rather than a variable-cost base is a better guide for discounting decisions that may affect long-term customers.

Question

Quizplus · Accepted Answer

A full-cost base includes all costs, both variable and fixed, which provides a more accurate cost calculation for long-term customers. Discounting decisions based solely on variable costs may not take into account the long-term impact on profits and revenue.

A Full-Cost Base Rather Than a Variable-Cost Base Is a Better