If the cost of materials increases, which of the following should the business consider as a result?
a. Meet with competitors and encourage them to raise prices to reflect the increased cost of materials.
b. Immediately raise the price of the product to reflect increased costs.
c. Analyze all costs and determine whether there is a way to reduce other production costs and offset the increase in materials.
d. Determine what the competitor is doing and adjust your price accordingly.
Answer: c. Analyze all costs and determine whether there is a way to reduce other production costs and offset the increase in materials.
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Which of the following statements is not valid as it applies to inventory costing methods?
a. If inventory quantities are to be maintained, part of the earnings must be invested (plowed back) in inventories when FIFO is used during a period of rising prices. b. LIFO tends to smooth out the net income pattern by matching current cost of goods sold with current revenue, when inventories remain at constant quantities. c. When a firm using the LIFO method fails to maintain its usual inventory position (reduces stock on hand below customary levels), there may be a matching of old costs with current revenue. d. The use of FIFO permits some control by management over the amount of net income for a period through controlled purchases, which is not true with LIFO.
Half-value layer (HVL) is related to which of the following principles of radiation protection?
a. Distance b. Exposure c. Monitoring d. Shielding e. Time