Figure 14-1 Above Represents the Six Steps in Setting Price

question 81

Multiple Choice

Figure 14-1 above represents the six steps in setting price.Which letter represents the step where a firm would balance incremental costs and revenues?

• A)"E"
• B)"F"
• C)"D"
• D)"C"
• E)"A"

---

Definitions:

Net Operating Income

This is the income derived from normal business operations after deducting operating expenses but before interest and taxes.

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, often reinvested in the business.

Ending Balance

The amount in an account at the end of an accounting period after all debits and credits have been accounted for.

Cash Account

An account that records cash transactions involving the inflows and outflows of cash.