Asked by
Christian Nichols
on Nov 12, 2024
Verified
Under the variable cost concept, only variable costs are included in the cost amount per unit to which the markup is added.
Variable Cost Concept
The variable cost concept implies costs that vary directly with the level of production or sales volume, such as materials and labor.
Markup
The amount added to the cost price of goods to cover overhead and profit when determining the selling price.
- Distinguish among total costs, variable costs, and fixed costs within the framework of pricing products and managing expenses.
Verified Answer
TD
Learning Objectives
- Distinguish among total costs, variable costs, and fixed costs within the framework of pricing products and managing expenses.