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When Setting Prices,the Company Must Consider Its External Environment

question 18

Essay

When setting prices,the company must consider its external environment.Describe four parts of the external environment and how they affect businesses.


Definitions:

Cash Disbursements

Outflows of cash, typically categorized for financial reporting and analysis of a company’s cash outflow activities.

Cash Disbursements

Outflows of cash for expenses, including payments to suppliers, employees, and other creditors.

Manufacturing Overhead Budget

A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period.

Variable Selling

Refers to costs that vary directly with the level of sales, such as commissions and shipping charges.

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