Determining whether a company's prices and costs are competitive
A) requires looking at the costs of a company's internally performed activities and the costs of its suppliers and forward channel allies (distributors/dealers).
B) requires performing pricing surveys on at least a quarterly basis.
C) involves developing close relationships with buyers to determine if the market is showing signs of increasing price sensitivity.
D) typically involves the use of activity-based cost accounting by the company's key retail customers.
E) All of these.

Question

Quizplus · Accepted Answer

Determining whether a company's prices and costs are competitive requires looking at the costs of a company's internally performed activities and the costs of its suppliers and forward channel allies (distributors/dealers). This helps in understanding the company's cost structure and how it compares to its competitors. Pricing surveys and developing relationships with buyers can also be helpful, but they are not as essential as analyzing costs. Activity-based cost accounting can provide insights for the company's key retail customers, but it is not relevant to determining the competitiveness of the company's prices and costs in general.

Determining Whether a Company's Prices and Costs Are Competitive