Pricing Directly Affects Revenues but Can Also Affect Production Costs

question 45

Multiple Choice

Pricing directly affects revenues but can also affect production costs and inventories depending upon its impact on consumer demand.Which of the following is not listed as a metric a manager should track?

• A) Inventory turnover
• B) Profit margin
• C) Days sales outstanding
• D) Average sales price

---

Definitions:

Experiment

A research method in which conditions are controlled and manipulated to test hypotheses and observe the outcomes in a systematic way.

Hypothesized Causes

Proposed explanations or factors that are believed to lead to a particular condition or event, often requiring further investigation or evidence.

Spurious Relationship

A false or misleading correlation between two variables that is not due to any direct relationship but might be due to a third variable or coincidence.

Causal Relationship

A connection between two variables where a change in one directly causes a change in the other.