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Holding All Other Things Constant,an Increase in Variable Production Costs

Question 63

Multiple Choice

Holding all other things constant,an increase in variable production costs will affect:


A) the selling price under the absorption costing approach to cost-plus pricing.
B) the profit-maximizing price.
C) both the selling price under the absorption costing approach to cost-plus pricing and the profit-maximizing price.
D) neither the selling price under the absorption costing approach to cost-plus pricing nor the profit-maximizing price.

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