Why Is It Best to Exclude Price from a Proposal

question 71

Multiple Choice

Why is it best to exclude price from a proposal document created for a group presentation?

• A) Fees and charges will create group confusion.
• B) Prices charged by competitors are hard to obtain.
• C) Fluctuations in the economy prevent pricing accuracy.
• D) Shipping and handling fees are difficult to estimate.
• E) Price rather than the document will become the focus.

---

Definitions:

Net Method

An accounting approach to the purchase of goods that incorporates discounts for early payment directly in the reported cost of purchases.

Recording Invoices

The process of documenting sales or purchases in the accounting records, typically by entering them into a journal or ledger.

Discount Recognized

The process of recording in the financial accounts the discount received or given on transactions, affecting the actual value recorded.

Periodic Inventory System

An inventory accounting practice where physical counts are performed at specific intervals to determine the cost of goods sold and ending inventory levels.