Understanding Selling Prices Quiz

Erica wants to buy Marco’s used iPod. He is asking her to pay him $100 for it. $100 is the iPod’s:

• cost of goods

• selling price

• cash flow

• profit

Which of the following is a true statement:

• Only certain types of products have selling prices

• Selling prices are easy for businesses to determine

• Selling prices for products always remain the same over time

• There are many kinds of selling prices for goods and services

Which of the following must a business accomplish through selling price:

• Pay all product costs

• Maintain market share

• Acquire startup capital

• Company valuation

The selling prices of products help customers:

• make buying decisions

• find a company’s fixed costs

• spend freely

• determine the amount of markup

Selling price helps customers allocate their money because price determines:

• what customers need to purchase

• the value of products to all purchasers

• what customers can afford to purchase

• the quality of all goods and services

It costs a publishing company $8 to produce a paperback book. The company sells each paperback it produces for $9.99. The $1.99 difference is known as:

• capital

• markup

• demand

• elasticity

Is the following statement true or false: There is no connection between a firm’s marketing objectives and its pricing objectives.

• True

• False

Which of the following is true of a business’s pricing objectives?

• They must be changed each fiscal year.

• They must be adjusted from time to time.

• They are chosen for the life of the business.

• They are not affected by changing circumstances.

A business that uses sales-oriented pricing objectives wants to increase the

• a. cost of its marketing efforts.

• b. total amount of its income from sales.

• c. amount of promotion it uses.

• d. inefficiency of its human resources.

A business that sets its prices lower than those of competitors will not make a profit unless it also

• reduces its inventory.

• increases promotion.

• controls its costs.

• enlarges its staff.