Question: Assume that your company uses activity-based costing. You must set the price for a custom order and suggest that your boss use a cost-plus pricing
Assume that your company uses activity-based costing. You must set the price for a custom order and suggest that your boss use a cost-plus pricing approach. Your boss states, "We can't possibly use cost-plus pricing given the activity-based costing system we recently implemented!" Respond to your boss's comment. What recommendation would you make as to how to price a custom order?
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Activitybased costing may actually provide better cost information than costing systems that alloca... View full answer
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