Consider the Following Statements About Absorption-Cost Pricing Formulas

Multiple Choice

Consider the following statements about absorption-cost pricing formulas:
I. Absorption-cost formulas consider a company's fixed manufacturing costs when establishing a selling price.
II. Absorption-cost formulas are often justified on the grounds that a company must cover all of its costs in the long run.
III. Absorption-cost data are the type that managers need when facing certain pricing decisions, such as whether or not to accept a special order.
Which of the above statements is (are) true?

A) II only.
B) I and II.
C) I and III.
D) II and III.
E) I, II, and III.