Answered

Under which one of the following circumstances is cost an important input into determining selling price?

A. When costs are fixed
B. When products are specialized
C. When direct materials cost is high
D. When direct labor cost is high



Answer :

GinnyAnswer

Final answer:

Cost is crucial for determining selling price, especially when direct materials cost is high.


Explanation:

Cost is an important input into determining selling price particularly when direct materials cost is high. Direct materials cost is a variable cost that directly affects the production cost of each unit, influencing the selling price decisions. When direct materials cost is high, it significantly impacts the overall cost structure and pricing strategy of a product.


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