Which of the Following Is a Major Consideration When Analyzing

question 18

Multiple Choice

Which of the following is a major consideration when analyzing a special pricing decision?

• A) The sales price must be high enough to cover any differential costs to fill the order.
• B) The company must have a good stock turnover ratio.
• C) The profit margin of the special sale must be higher than the regular sales.
• D) The sunk costs of the decision must not exceed the irrelevant costs.

---

Definitions:

Interest

A charge for borrowed money, generally a percentage of the amount borrowed.

Simple Interest Rate

A method of calculating interest where the charge is based only on the original principal, not on the accumulated interest.

Investment

The assignment of monetary values in the hope of making a profit or gaining income.

Interest

A fee paid for the use of borrowed funds, or for delaying the repayment of a debt.