A Business Will Not Be Successful Unless It Charges a Price

question 97

Multiple Choice

A business will not be successful unless it charges a price for its products that covers its total

• A)cost and a margin of profit.
• B)cost of goods and selling cost.
• C)fixed cost and overhead cost.
• D)variable cost and cost of goods.

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Definitions:

Tennis Rackets

Sporting equipment consisting of a handled frame with a open hoop where a network of strings is stretched tightly.

Production Of Socks

The manufacturing process of creating socks, involving various steps from the sourcing of materials to the final product packaging.

Production Possibilities Frontier

A graphical representation showing the maximum combinations of goods and/or services that can be produced with a fixed set of resources.

Opportunity Cost

The lost benefit that could have been enjoyed if the chosen option had not been taken, implying the trade-off of forgoing the next best alternative.