Which of the Following Best Explains Why Market Prices Are

question 29

Multiple Choice

Which of the following best explains why market prices are useful to a financial manager when performing a cost-benefit analysis?

• A) They can be used to convert different services and commodities into equivalent cash values which can be compared.
• B) They can be used to determine how much an asset can be sold for.
• C) They allow all commodities and services to be assigned a fixed and unchanging value.
• D) They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.