Which of the Following Statements Describes a Problem in Cost-Based

question 25

Multiple Choice

Which of the following statements describes a problem in cost-based pricing for services?

• A) Monetary price must be adjusted to reflect the value of non-monetary costs
• B) Heterogeneity of services limits comparability
• C) Prices may not reflect customer value
• D) Labor is more difficult to price than materials
• E) Information on service costs is not available to customers

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Definitions:

Labor Supply

The total hours that workers wish to work at a given wage rate, or the total number of workers willing to work.

Wages

Monetary compensation paid by an employer to an employee in exchange for performed work, typically calculated on an hourly, daily, or piecework basis.

Millennial Generation

The Millennial Generation, often simply called Millennials, refers to the demographic cohort following Generation X, typically born between the early 1980s and the late 1990s to early 2000s.

Labor Supply

The total hours that workers are willing and able to work at a given wage rate in a specific period.