Which of the following statements is (are) true regarding product costing?

(A) Individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements.
(B) A common decision facing managers is determining the price at which to sell their products or provide their services.

Option B is the correct answer.

Explanation:

Option B is correct because when a firm produces or manufactures the product then various types of costs are associated with that product like variable costs, fixed costs, etc. Profit is the main motive of every firm so the manager decides the price of the commodity in such a way that it can compete in the market and generate revenue for the firm. Therefore, it is the responsibility of the manager to look after the pricing strategy at which the product has to sell.

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