Which of the following statements is true? 1. The absorption costing approach to cost-plus pricing will result in attaining the company's required rate of return only if forecasted unit sales are realized. 2. Variable selling and administrative costs are excluded from the cost base used to set a selling price under the absorption approach to cost-plus pricing described in the text. 3. The markup over cost under the absorption costing approach would decrease if the unit product cost increases, holding everything else constant 4. In the absorption approach to cost-plus pricing, the anticipated markup in dollars is equal to the anticipated profit. Multiple Choice O Both statements 1 and 2 are true. Both statements 2 and 3 are true. Statements 1, 2 and 3 are true. All of the statements are true.

Which of the followng ctatements is true? 2 Varlable selling and administrative costs are excluded from the cost base used to set a seling price under the abcorption approach to cost-plus priang described in the iext. 3 The markup over cost undor the absorption coung appeoach would docrease if the unit product cost increasos, holding everything clce constart. 4 in the absorpoon approach to cost-plis pnang, the armedpated markup in dolass is equal to the anscipared profit Musple choce Goth tatements 1 and 2 are tre. noth atatements 2 and 3 are true. Sanements 12 and a are the Ar of the statements are true