A business will not be successful unless it charges a price for its products that covers its total
A) cost and a margin of profit.
B) cost of goods and selling cost.
C) fixed cost and operating expense.
D) variable cost and cost of goods.

Question

Quizplus · Accepted Answer

In order for a business to be successful, it needs to charge a price that not only covers its costs (which include fixed costs, variable costs, cost of goods, and operating expenses) but also provides a margin of profit. Without enough profit, the business will not be able to invest in growth, development, and innovation. Therefore, choice A is the best option.

A Business Will Not Be Successful Unless It Charges a Price