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Cost and Pricing

Total questions: 13

Worksheet time: 8mins

Name
Class
Date
1.

Which of the following is the best definition of COSTS?

a)

The total amount of income a business makes from selling products or services

b)

The amount of money a business has left over after paying for materials.

c)

The total amount of money a business spends to make and sell their products and services

2.

Which statement best describes "Price"?

a)

The cost of producing items

b)

The amount customers are charged for items

c)

The profit earned from selling items

3.
What are three factors that influence price?
a)
Supply and Demand, Price, and Cost
b)
Cost, Competition, Supply and Demand. 
c)
Competition, marketing, and branding
4.

The process of assigning prices to items you're selling is called __.

a)

overpricing

b)

pricing

c)

retailing

d)

listing

5.
Which of the following is the best definition of PROFIT?
a)
The total amount of income a business makes from selling products or services
b)
The amount of money a business has left over after paying for their costs.
c)
The total amount of money a business spends.
6.

Competitive, realistic, and flexible are components of:

a)

Product Mix

b)

Promotional Medium

c)

Effective Pricing

7.

Which of the following affects price?

a)

Costs, Competition Channel Members and Company Objectives

b)

Supply and Demand, Economic Conditions, and Government Regulations

c)

All of these

8.

If there is a lot of demand for a specific brand of jeans and the supply is low, the company might ______ price.

a)

Increase

b)

Decrease

c)

Keep the same

9.

The amount added to your cost to calculate the selling price.

a)

margin

b)

markup

c)

cost of goods sold

d)

list price

10.

If the costs for a company to make their products goes up, the price for the product will probably ______.

a)

Increase

b)

Decrease

c)

Stay the same

11.

What is the mathematical expression for solving unit price?

a)

Unit Price = Total Price + Number of Units

b)

Unit Price = Total Price - Number of Units

c)

Unit Price = Total Price X Number of Units

d)

Unit Price = Total Price / Number of Units

12.

Apples at the grocery store is packaged in 1-pound packages or 5-pound packages. The 1-pound package costs $1.19 and the 5-pound package costs $5.47. What is the unit price for the 5-pound bag?

a)

$1.09

b)

$1.19

c)

$1.94

d)

$.094

13.

Product cost includes

a)

Direct material

b)

Direct labor

c)

Selling and administrative costs

d)

Manufacturing overhead