In Using the Total Cost Concept of Applying the Cost-Plus

Multiple Choice

In using the total cost concept of applying the cost-plus approach to product pricing, what is included in the cost amount to which the markup is added?

A) Total selling and administrative expenses plus desired profit
B) Total fixed manufacturing costs, total fixed selling and administrative expenses, and desired profit
C) Total costs of manufacturing a product plus selling and administrative expenses
D) Total variable manufacturing costs, total variable selling and administrative expenses, and desired profit