Which of the Following Statements Is True of Costs and Pricing

question 112

Multiple Choice

Which of the following statements is true of costs and pricing decisions?

• A) Companies get profit from selling products only when they are the price makers.
• B) Companies supply products as long as the price the customer is willing to pay for its products exceeds the price that is charged by the competitor.
• C) Companies supply products as long as there is a demand for the product in the market regardless of the price at which the products are sold.
• D) Companies supply products as long as the revenues from selling the additional units exceed the cost of producing them.

---

Definitions:

Liquidity Ratio

A financial metric used to determine how quickly a company can pay off its short-term liabilities with its liquid assets.

Maturing Obligations

Debts or promises due to be settled or fulfilled within a short timeframe, usually within the next fiscal year.

Receivables Turnover

A financial ratio that measures the efficiency of a company in collecting its accounts receivable or the speed at which it turns its receivables into cash.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating its efficiency in managing and selling stock.