Which of the Following Statements About Prices Is False

Which of the following statements about prices is false?

A) Prices must cover all costs and a normal profit margin.
B) A variable cost-plus pricing formula requires a higher mark-up percentage than a total cost-plus pricing formula.
C) Different definitions of cost base, each combined with a different mark-up percentage, will result in the same price for a product or service.
D) If prices are set close to variable manufacturing costs, the firm will generally earn a higher profit margin.