What Costs Can Be Justified When Managers Initially Set Prices

question 46

Multiple Choice

What costs can be justified when managers initially set prices to cover the costs plus a profit and then subsequently adjusts the prices to reflect market conditions?

• A)Variable costs
• B)Fixed costs
• C)Full costs
• D)Absorption costs

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Definitions:

Physiological Arousal

Involves the activation of the body's state, preparing an individual for action and is often linked to emotional responses.

Emotional Response

A person's immediate and spontaneous reaction to a stimulus, which could be feelings of happiness, sadness, anger, or fear.

Facially Expressed

Pertaining to emotions, intentions, or communications conveyed through facial movements and expressions.

Brows Drawn

A facial expression where the eyebrows are pulled together, typically indicating worry, concentration, or anger.