When Making Pricing Decisions Managers Should Include Fixed Cost Per

Multiple Choice

When making pricing decisions managers should include fixed cost per unit in the cost because ________.

A) it leads to reporting higher operating income for the period
B) it allows managers to report positive contribution as long as prices are above variable costs
C) in the long run, the price of a product must exceed the full cost of the product
D) it requires the management accountant to perform a detailed analysis of cost-behavior patterns to separate product costs into variable and fixed components