Answer
No, I don't agree.
Work Step by Step
Relevant costs for pricing decisions are not necessarily the full costs of the product. Relevant costs are those that directly impact a pricing decision, and they typically include variable costs such as direct materials, direct labor, and any additional variable costs associated with producing one more unit. Fixed costs that do not change with the production level are usually considered irrelevant for short-term pricing decisions, as they won't change based on the decision to sell one more unit or not. Pricing decisions often focus on covering variable costs and contributing to overall profitability, rather than considering the full cost of the product.
