Identify the Correct Statement About the Relationships Between Quantity,cost,and Price

question 253

Multiple Choice

Identify the correct statement about the relationships between quantity,cost,and price based on the cost-oriented pricing model.

• A) The average total cost is usually obtained by adding the profit per unit to the quantity demanded at selling price.
• B) Cost-oriented selling price per unit is usually determined by adding the variable cost per unit with the estimated quantity to be sold.
• C) The estimated total number of units to be sold usually determines the average fixed cost per unit.
• D) The quantity demanded at selling price is the quantity used to compute the average cost.

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Definitions:

Damages

Monetary compensation required to be paid as a result of loss or injury due to a breach of contract or a tort.

Standard Form Contract

A pre-prepared contract where most terms are set in advance with little or no negotiation between parties, typically favoring the drafter of the contract.

Sale of Goods Act

A legal statute that governs the sale and purchase of goods, ensuring certain standards and rights in transactions.

Sale of Goods

A transaction involving the transfer of tangible personal property from seller to buyer, under terms and conditions outlined in a contract.