_____ are frequently used as a basis for price determination largely because they are easily measured and provide a floor under which prices cannot go in the long term.
A) Costs
B) Corporate objectives
C) Demand factors
D) Competitive factors

Question

Quizplus · Accepted Answer

Costs, such as production costs or labor costs, are easily measurable and provide a floor under which prices cannot go in the long term. If a company prices their products below the cost of production, they will not be profitable and will ultimately go out of business. Therefore, costs are frequently used as a basis for price determination.

_____ Are Frequently Used as a Basis for Price Determination