Which Concept Most Likely Explains Why Pharmaceutical Giant Pfizer Offered

question 41

Multiple Choice

Which concept most likely explains why pharmaceutical giant Pfizer offered low-income senior citizens many of its most widely used prescriptions for $15 each per month?

• A) the profit motive since aging baby boomers are a large, profitable market
• B) the social responsibility concept
• C) the necessity of matching competitors' actions
• D) new regulatory Medicare mandates as a result of the Affordable Care Act
• E) the mandate by its industry's code of ethics

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Definitions:

Raw Materials

The basic materials that are used in the manufacturing process to create finished goods.

Direct Labor

The wages or costs associated with workers who are directly involved in the production of goods or services.

Indirect Labor Costs

Expenses for labor that supports the production process but is not directly involved in the creation of the product or service.

Overhead Applied

The portion of overhead costs allocated to the production of goods based on a predetermined rate.