Sales volume plays a large role in determining per unit costs in the cost-plus pricing approach.

a. True

b. False

That statement is true.

In the cost-plus pricing approach, you add up all the cost needed for the product (material, direct labor, and overhead) and then calculate it with mark-up percentage in order to determine the price that you should set for your product.

Since cost per unit is determined by total products/total cost, sales volume played a large role in determining per unit costs