Which of the following statements is true if variable product cost per unit is used under the cost price approach to set transfer prices?

a.If variable product cost per unit is used under the cost price approach to set transfer prices, direct materials and direct labor are excluded from transfer price.

b.If variable product cost per unit is used under the cost price approach to set transfer prices, direct materials cost is excluded from transfer price.

c.If variable product cost per unit is used under the cost price approach to set transfer prices, direct labor cost is excluded from transfer price.

d.If variable product cost per unit is used under the cost price approach to set transfer prices, fixed factory overhead cost is excluded from transfer price.