Costs are a major issue when establishing price.

Question

Quizplus · Accepted Answer

Costs play a crucial role in determining the final price of a product or service. Companies need to consider various costs such as production, marketing, research and development, and distribution costs, among others, while setting the price. The price should be high enough to cover all these costs and provide a reasonable profit margin, yet low enough to be competitive in the market. Thus, costs are indeed a significant factor in establishing the price of a product or service.

Costs Are a Major Issue When Establishing Price