An External Issue to Be Considered When Setting a Price

question 85

Multiple Choice

An external issue to be considered when setting a price is

• A)the quality of competing products or services.
• B)the quality of materials and labor.
• C)a price geared toward a minimum return on investment.
• D)the total costs of the product or service.

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Definitions:

Recognition Clause

A provision in a contract that specifies the conditions under which a party acknowledges something as true, such as union recognition in labor contracts.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.

Economic Scale

Economies of scale, which refer to the cost advantages that enterprises obtain due to size, output, or scale of operation.

Critical Factors

Essential elements or conditions necessary for the success of a business or project.