According to the Textbook,which of the Following Statements Is TRUE

question 49

Multiple Choice

According to the textbook,which of the following statements is TRUE? Consumers buy products based on a combination of:

• A) Cost, quality, manufacturer, and simplicity of use
• B) Cost, quality, availability, and brand
• C) Cost, quality, advertising, store preference, and appearance
• D) Cost, quality, availability, maintainability, and reputation

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Definitions:

Variable Cost

Costs that vary in direct proportion to changes in the level of production or sales.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and equipment leases.

Variable Cost

Costs that change in proportion to the level of activity or volume of goods produced.

Earnings Before Taxes

A financial metric indicating the profit earned by a business before the deduction of tax expenses.