List the Two Primary Determinants of Price

question 178

Essay

List the two primary determinants of price.What other factors can affect price setting?

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Definitions:

Job Order

A work instruction or order for producing a specific quantity of a product or service according to customer specifications.

Conversion Cost

The combined costs of direct labor and manufacturing overheads associated with converting raw materials into finished products.

Direct Labor

The labor cost of workers who are directly involved in the manufacture of products or the provision of services.

Factory Overhead

All indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of non-direct labor.