What is the relationship between a cost and a price, if any?
A) Price sets a limit on cost at a given set price.
B) Costs do not determine price; they simply are taken out of selling price to yield a profit.
C) Cost is set by the market based on the match between a product's or service's attributes (value proposition) and the preferences of the customer; price is then based on cost.
D) Price is determined by how a business is run, which is not tied to the cost.
E) There is no relationship between a cost and a price.

Question

Quizplus · Accepted Answer

Costs are subtracted from the selling price to determine profit, indicating a direct relationship where costs influence pricing decisions to ensure profitability.

What Is the Relationship Between a Cost and a Price