Product costs set a ________ to a product's price.

Name: Product costs set a ________ to a product's price.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Product costs set a floor to a product's price, meaning that the price cannot go lower than the cost of producing the product. The cost of producing a product includes factors such as materials, labor, and overhead costs. It is important to consider product costs when setting a price, as pricing the product below the cost of production may result in losses for the company.

Product Costs Set a ________ to a Product's Price