What are price standards based on?
A) the amount that should be paid per unit of output
B) the amount that should be used per unit of output
C) the amount that should be paid per unit of input purchased
D) the amount that should be paid for the total quantity of input to be used

Question

Quizplus · Accepted Answer

Price standards are usually based on the amount that should be paid per unit of input purchased. This is because the cost of inputs directly impacts the cost of production, and so it is important to set prices for these inputs that are reasonable and reflect their value.

What Are Price Standards Based On