A Fair Price

question 10

Multiple Choice

A fair price:

• A) is based on market conditions, and cost structure has no bearing on the determination of a fair price.
• B) is the lowest price that ensures a continuous supply of the proper quality where and when needed and at which the supplier makes a reasonable profit.
• C) is based on the cost to produce an item or service without consideration for the supplier's profit margin.
• D) is an amount arrived at through negotiations where the seller's price is a starting point..
• E) is when all sellers of equal goods or services receive the same per unit price.

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Definitions:

Defined Benefit Plan

A pension plan that promises employees a fixed annual pension benefit at retirement, based on years of service and compensation levels.

Defined Contribution Plan

A retirement plan in which the employer, employee, or both make contributions on a regular basis, and the final benefits depend on the investment's performance.

SUTA Taxes

SUTA Taxes refer to State Unemployment Tax Act taxes, which employers pay to provide unemployment benefits to laid-off workers.

FUTA Taxes

Federal Unemployment Tax Act taxes, which are payroll taxes paid by employers to fund unemployment benefits.