alleryStart learning →In cost-plus pricing, total cost is the sum of which two items?
AMaterial cost and tax
BInterest and rent paid
CSales and profit made
DFixed and variable costs
Answer & Solution
Correct answer: D. Fixed and variable costs
Total cost is fixed costs plus variable costs, before a markup is added.
Keep practising Job Costing
Browse all Job Costing questions for CA Inter, or explore more Cost and Management Accounting topics.
Related questions
Cost accounting is mainly concerned with information for whom?How does factory rent behave as output changes?Depreciation of factory equipment is classed as which overhead?How are indirect costs assigned to cost objects?Lubricants used to keep machines running are classed as what?Which of these is a direct material?Cost-plus pricing is uncommon in which kind of market?The markup in cost-plus pricing is meant to give what?