COST ACCOUNTING
RESPONSIBILITY ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
on the open market
|
|
|
usually set by an absorption-costing calculation
|
|
|
set by charging variable costs plus a lumpsum or an additional mark-up but less than full mark-up
|
|
|
representing the cash outflows of the supplying division plus the contribution to the supplying division from an outside sale
|
Detailed explanation-1: -Full cost plus pricing is a price-setting method under which you add together the direct material cost, direct labor cost, selling and administrative costs, and overhead costs for a product, and add to it a markup percentage (to create a profit margin) in order to derive the price of the product.
Detailed explanation-2: -What Is Variable Cost-Plus Pricing? Variable cost-plus pricing is a pricing method whereby the selling price is established by adding a markup to total variable costs. The expectation is that the markup will contribute to meeting all or a part of the fixed costs and yield some level of profit.
Detailed explanation-3: -Full-cost pricing computes the price based on the maximum number of units sold, and variable-cost pricing computes the price based on the minimum number of units sold.
Detailed explanation-4: -The full-cost calculation is simple. It looks like: (total production costs + selling and administrative costs + markup) รท the number of units expected to sell.