Unit Volume as a Pricing Objective Refers to

question 330

Multiple Choice

Unit volume as a pricing objective refers to

• A)the quantity or products to be produced or sold.
• B)the ratio of production costs to maximum profit generated per unit.
• C)the ratio of production costs to the minimum sales price that would still generate profit.
• D)the total quantity of product sold relative to the amount of product in inventory.
• E)the number of units that need to be sold in order to avoid carrying more than minimal inventory.

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Definitions:

Current Rate Method

An accounting method for translating foreign currency financial statements where all current-year items are translated at the present exchange rate.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.

Average Cost

An accounting method that calculates the cost of goods sold and ending inventory based on the weighted average of all units purchased or manufactured.