Advantages of Using the Full Cost of the Product as the Cost

Multiple Choice

Advantages of using the full cost of the product as the cost base include all of the following EXCEPT that:

A) managers are informed regarding the minimum long-run cost they need to recover to stay in business
B) it limits the ability of a salesperson to cut prices
C) fixed cost allocations can be arbitrary
D) it does not require a detailed analysis of cost behavior for computations