10-3 & 10-4 Test

Price is the money a customer must pay for a product or service?

• True

• False

Which of the following is not a pricing factor?

• Season

• Supply and Demand

• Convenience

• Markup Pricing

Prices being high due to a product being new to the market best describes which pricing factor?

• Supply and Demand

• Age

• Season

• Convenience

A product having few close competitors refers to which pricing factor?

• Complexity

• Uniqueness

• Age

• Convenience

Selling price = Product costs + Operating costs + Profit

• True

• False

Product costs are the amount of money available to the business after all costs and expenses have been paid.

• True

• False

The difference between the selling price and the product costs.

• gross margin

• operating expenses

• profit

• markup price

Amount added to the cost of a product to set the selling price.

• markup

• markdown

• gross margin

• net cost

Which of the following is not a reason that a product might be marked down in price?

• selling season ending

• a flaw in the product

• decrease in demand

• increase in demand

Which of the following conditions will result in a lower rather than a higher price?

• a high customer demand

• a large quantity of available products

• a product that has very few similar competing products

• all would result in lower prices