Which of the Following Statements Is True

question 50

Multiple Choice

Which of the following statements is true?

• A) The way to increase the profitability of a firm is to create a greater number of products.
• B) The amount of value a firm creates is measured by the difference between its costs of production and the value that consumers perceive in its products.
• C) The more value customers place on a firm's products, the lower the price the firm is able to charge for those products.
• D) The price a firm charges for a good or service is typically more than the value the customer places on that good or service.

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Definitions:

Standard Costs

Predetermined or estimated costs used for planning and control purposes in budgeting and cost management.

Stockholders

The owners of a corporation.

Standard Costs

Predetermined costs for materials, labor, and overhead that are used as benchmarks to evaluate actual production costs.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in our daily lives to solve problems or create useful products.