The Marginal Cost Method of Pricing Considers the Direct Costs

question 35

Multiple Choice

The marginal cost method of pricing considers the direct costs of producing and selling products for export.What costs are disregarded in this method?

• A)Currency fluctuations
• B)Potential government regulations in future legislative sessions
• C)Fixed costs, R&D and domestic overheads
• D)Weather forecasts, especially in regards to El Nino

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Definitions:

Profitable

Generating income that exceeds expenditures, thus providing a financial gain for an entity.

Corporate Citizenship

The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders.