To determine a product's selling price based on the total cost method, management should include:

• A. Only direct material costs
• B. Only selling and administrative expenses
• C. All variable and fixed costs plus a markup for profit
• D. Only variable manufacturing costs

Answer: (C)

Verified step by step guidance

1. Understand the total cost method: This method involves calculating the total cost of producing a product, which includes both variable and fixed costs, and then adding a markup for profit to determine the selling price.
2. Identify the components of variable costs: These include costs that change with the level of production, such as direct materials, direct labor, and variable manufacturing overhead.
3. Identify the components of fixed costs: These are costs that remain constant regardless of production levels, such as rent, salaries, and fixed manufacturing overhead.
4. Calculate the total cost: Add the variable costs and fixed costs together to determine the total cost of producing the product.
5. Add a markup for profit: Determine the desired profit margin and apply it to the total cost to calculate the selling price of the product.