An External Issue to Be Considered When Setting a Price

question 48

Multiple Choice

An external issue to be considered when setting a price is

• A)the variable costs of the product or service.
• B)the desired rate of return.
• C)the quality of materials and labor.
• D)the number of competing products or services.

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Definitions:

Goods

Tangible items that are manufactured or produced for sale and use, often referring to items of merchandise or inventory.

Right of Return

The right of return is a policy that allows customers to return purchased goods within a specified period for a refund, exchange, or credit.

Sales Revenue

Income earned from the sale of goods or services before any expenses are deducted.

Refund Liability

Refund liability refers to the obligation a company has to return money to its customers for products or services that were returned, canceled, or unsatisfactory.