Under which ONE of the following circumstances is cost an important input into determining selling price?

When costs are fixed

When products are specialized

When direct labor cost is high

When direct materials cost is high

When work-in-process inventory levels are low

I think the correct answer from the choices listed above is the first option. It would be when costs are fixed that cost is an important input into determining selling price. This is because you have to gain what you have lost in a product and that is the fixed costs that exist every production. Hope this answers the question.