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18 November, 02:16

Sales volume plays a large role in determining per unit costs in the cost-plus pricing approach.

a. True

b. False

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Answers (1)
  1. 18 November, 05:29
    0
    That statement is true.

    In the cost-plus pricing approach, you add up all the cost needed for the product (material, direct labor, and overhead) and then calculate it with mark-up percentage in order to determine the price that you should set for your product.

    Since cost per unit is determined by total products/total cost, sales volume played a large role in determining per unit costs
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