Which of the Following Is True of Price

question 107

Multiple Choice

Which of the following is true of price?

• A) Price must be greater than cost for a firm to earn income.
• B) Price is the difference between gross margin and the cost of goods sold.
• C) Price is a dollar measure of the resources used to achieve a given benefit.
• D) Price is the difference between cost per unit and income per unit.

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Definitions:

Sale of Assets

The process of disposing of business assets, either tangible or intangible, in exchange for cash or other compensation.

Sheriff's Sale

A public auction of property repossessed by the government as a result of the owner's failure to comply with legal obligations, such as unpaid taxes or mortgage.

Capital Balances

The amount of money that owners have invested in a business, typically shown in the equity section of the balance sheet.

Ending

The final balance or the concluding part of a financial statement or period.