Which of the following statements is true? I

Companies operating in competitive markets generally use the cost- plusapproach to price products.

An example of why a manager would perform cost allocations for economic decisions would be to cost inventories for reporting to the taxauthorities.

) In long-run pricing, decisions should consider all manufacturing and non-manufacturing costs but should consider all future direct and indirect costsas irrelevant.

For long-run pricing decisions, using stable prices has the advantage ofhelping to build buyer-seller relationships.