QuestionJune 12, 2025

True or False Question In the absorption approach to cost-plus pricing, the cost base is the variable costing unit product cost. True False C Need help? Revlew these concept resources. D Read About the Concept

True or False Question In the absorption approach to cost-plus pricing, the cost base is the variable costing unit product cost. True False C Need help? Revlew these concept resources. D Read About the Concept
True or False Question
In the absorption approach to cost-plus pricing, the cost base is the variable costing unit product cost.
True
False
C Need help? Revlew these concept resources.
D Read About the Concept

Solution
4.3(301 votes)

Answer

False Explanation 1. Define Absorption Costing Absorption costing includes all manufacturing costs (fixed and variable) in the cost base. 2. Define Variable Costing Variable costing includes only variable manufacturing costs in the cost base. 3. Compare Cost Bases In absorption costing, the cost base is not limited to variable costs; it includes fixed costs as well.

Explanation

1. Define Absorption Costing<br /> Absorption costing includes all manufacturing costs (fixed and variable) in the cost base.<br />2. Define Variable Costing<br /> Variable costing includes only variable manufacturing costs in the cost base.<br />3. Compare Cost Bases<br /> In absorption costing, the cost base is not limited to variable costs; it includes fixed costs as well.
Click to rate:

Similar Questions