Which of the following will help mangers set reasonable selling prices?
A)Previous year net income of the company
B)Number of employees in the company
C)Unit cost knowledge of the product
D)Previous year's income tax variance

Question

Quizplus · Accepted Answer

Unit cost knowledge of the product is crucial in determining a reasonable selling price since it will allow managers to factor in production costs, overhead expenses, and desired profit margins when pricing their products. Previous year net income and income tax variance may provide insight into the profitability of the company, but they don't directly relate to pricing. The number of employees in the company is not relevant to setting selling prices.

Which of the Following Will Help Mangers Set Reasonable Selling