Please help to understand

Chair Co uses cost-plus pricing.
Which of the following statements regarding cost-plus pricing strategies are correct?
(1) Marginal cost-plus pricing is easier where there is a readily identifiable variable cost
(2) Full cost-plus pricing requires the budgeted level of output to be determined at the outset
(3) Cost-plus pricing is a strategically focused approach as it accounts for external factors
(4) Cost-plus pricing requires that the profit mark-up applied by an organisation is fixed
A (1), (2) and (4)
B (1) and (2) only
C (3) and (4)
D (1) and (3)

The answer was B how ever when explaining the second option about full cost-Plus. It says “The budgeted volume of output does need to be determined for full cost-plus pricing as it would be used to calculate the overhead
absorption rate for the calculation of the full cost per unit”

if its so why they choose as correct