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.

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Definitions:

RFID

Radio-Frequency Identification, a technology using wireless non-contact use of radio waves to transfer data for the purposes of automatically identifying and tracking tags attached to objects.

Two-Dimensional Code

A matrix barcode that stores information both horizontally and vertically, such as a QR code.

Active RFID Codes

Radio-frequency identification tags that have their own power source, allowing them to transmit data over longer distances than passive RFID tags.

Track

To monitor or follow the progress or movement of an object, individual, or trend over time.