Determining Whether a Company's Prices and Costs Are Competitive

question 50

Multiple Choice

Determining whether a company's prices and costs are competitive

• A) requires looking at the costs of a company's internally performed activities and the costs of its suppliers and forward channel allies (distributors/dealers).
• B) requires performing pricing surveys on at least a quarterly basis.
• C) involves developing close relationships with buyers to determine if the market is showing signs of increasing price sensitivity.
• D) typically involves the use of activity-based cost accounting by the company's key retail customers.
• E) All of these.

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Definitions:

Consumption

The utilization of products and services by families.

Marginal Propensity

The ratio of the change in an economic variable, such as consumption or saving, to the change in another, typically income.

Disposable Income

The net financial position of households for spending and saving, after accounting for income taxes.

Consumption

Consumption encompasses the acquisition and use of goods and services by households to satisfy their needs and wants.