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WHICH PRICING GIVES THE HIGHEST PRICE?
A product has a prime cost of $12, variable overheads of $3 per unit and fixed overheads of $6 per unit.
a) Prime cost + 80%
B) Margianl cost + 60 %
C) TAC + 20 %
D) net margin of 14% on selling price.
Sir, what the abbreviation TAC stands for , cause I know only TOC?What is the formula for TOC?
TAC here means total absorption cost.
I have no idea what TOC means, or any formula, the examiner does not use abbreviations like this in the Paper F5 exam.
(And this question is most unlikely to be ever asked in Paper F5 – it is a basic Paper F2 question.)
Thank you Sir.
You are welcome 🙂