© examsnet.com
Question : 13
Total: 60
'Product Cost' as a factor affecting price determination of a product includes:
Solution:
(a) Cost of producing, distributing and selling the product.
Product costs is the total cost of product which includes production cost, selling and distribution costs. In the long run the firm strives to cover all their costs. The cost sets the minimum level of floor price for a product. In addition to that firm aims to earn profit margin over and above the cost.
Product costs is the total cost of product which includes production cost, selling and distribution costs. In the long run the firm strives to cover all their costs. The cost sets the minimum level of floor price for a product. In addition to that firm aims to earn profit margin over and above the cost.
© examsnet.com
Go to Question: