Collins Company Uses Cost-Plus Pricing and Has Calculated Total Variable

Multiple Choice

Collins Company uses cost-plus pricing and has calculated total variable manufacturing cost, total absorption manufacturing cost, and total cost for one of its products. Which of these costs would be the smallest?

A) Total variable manufacturing cost.
B) Total absorption manufacturing cost.
C) Total cost.
D) There is no difference between total absorption manufacturing cost and total cost.
E) More information is needed to correctly answer the question.