An External Issue to Be Considered When Setting a Price

question 38

Multiple Choice

An external issue to be considered when setting a price is

• A)the quality of materials and labor.
• B)total demand for the product or service.
• C)usage of scarce resources.
• D)the variable costs of the product or service.

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Definitions:

Investing Activities

Financial activities related to the acquisition or disposal of long-term assets and investments not included in cash equivalents.

Statement of Cash Flows

An accounting report detailing the impact of variations in balance sheet accounts and earnings on cash and cash equivalents, categorizing the analysis among operating, investing, and financing activities.

Nonoperating Activities

Various revenues, expenses, gains, and losses that are unrelated to a company’s main line of operations.

Statement of Cash Flows

A financial report that details the sources and uses of a company's cash during a specific period, showing operations, investing, and financing activities.