Which of the following is true of the full-cost pricing approach?
A. In this approach, any contribution to fixed cost after variable costs are covered is profit to the company.
B. In this approach, the firm is concerned only with the marginal or incremental cost of producing goods to be sold in overseas markets.
C. In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin.
D. This approach is a practical approach to pricing when a company has high fixed costs and unused production capacity.
E. This approach insists that each unit of a similar product is treated differently in terms of cost.
Answer: In this approach, prices are often set on a cost-plus basis, that is, total costs plus a profit margin.
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Marketing
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