Decisions Made Regarding the Pricing of Goods or Services Generally

Multiple Choice

Decisions made regarding the pricing of goods or services generally should be made

A) using absorption costing data in order to ensure that the full cost is recovered.
B) using absorption costing data since such data provides more complete information than does variable costing information on the effect of changes in price on volume and the effects of changes in volume on cost.
C) using variable costing data since such data provides more complete information than does absorption costing information on cost behavior and on the effects of changes in price on volume and the effect of changes in volume on cost.
D) using absorption costing data since absorption costing is required by the federal government in preparing federal tax returns.