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.

---

Definitions:

Bank Service Charges

Fees charged by banks for various services such as account maintenance, transactions, or overdrafts, recorded as expenses in accounting.

Journal Entry

A record in accounting that represents a transaction and its effects on accounts, captured in the general ledger.

Bank Reconciliation

The process of comparing a company's recorded transactions in its ledger to its bank statement, ensuring consistency and accuracy in financial records.

Adjusted Cash Balance

The cash amount reported in financial statements, modified for checks written or deposits in transit that have not yet cleared.