When a company sells its goods or services at a price less than the overall costs, the company incurs a:
A) loss.
B) profit.
C) contribution margin.
D) negative transaction.

Question

Quizplus · Accepted Answer

When a company sells its goods or services for less than the overall costs, it incurs a loss because the revenue generated from the sale is not sufficient to cover the costs associated with producing and selling those goods or services.

When a Company Sells Its Goods or Services at a Price