Which of the Following Statements About Prices Is False

question 59

Multiple Choice

Which of the following statements about prices is false?

• A) Prices must cover all costs and a normal profit margin.
• B) A variable cost-plus pricing formula requires a higher mark-up percentage than a total cost-plus pricing formula.
• C) Different definitions of cost base, each combined with a different mark-up percentage, will result in the same price for a product or service.
• D) If prices are set close to variable manufacturing costs, the firm will generally earn a higher profit margin.

---

Definitions:

Apply Text Effect

Adding visual enhancements to text, such as shadows, reflections, glow, or 3D effects, to improve its aesthetic appeal.

Date Picker Content Control

A graphical user interface control that lets users select a date from a pop-up calendar and insert it into a document or form.

Picture Content Control

A feature in document editing software that enables users to insert and manage images within a document through a designated content control element.

Check Box

A GUI element that permits the user to make a binary choice, typically represented as a square that can be marked or left blank.