Which of the Following Statements Regarding Product Cost Distortion and Product

question 63

Multiple Choice

Which of the following statements regarding product cost distortion and product pricing is/are true?

• A) Product cost distortions will have a more serious impact on product pricing if the market prices are a major factor in setting prices.
• B) Product cost distortions will have a more serious impact if cost-plus pricing is a major tool for determining prices.
• C) If product costs are distorted, it will not be possible to determine the market price.
• D) Product cost distortions will have a more serious impact if cost-plus pricing is a major tool for determining prices AND if product costs are distorted, it will not be possible to determine the market price.

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Definitions:

Manifest Needs Theory

A psychological theory that focuses on observable needs that motivate an individual to perform certain behaviors.

Behavior Modification

The process of changing behavior because of a reward or lack of a reward.

Task Significance

The extent to which a job has a substantial impact on the lives or work of other people, either in the immediate organization or in the external environment.

Manifest Needs Theory

A psychological theory suggesting that certain human needs are openly communicated and visible, influencing behavior in different situations.