Managers' knowledge on unit cost helps in setting reasonable selling prices for products.

Question

Quizplus · Accepted Answer

Managers' knowledge on unit cost is important in calculating a reasonable selling price for products. If they are aware of the expenses involved in production, they can set a selling price that covers the cost and provides a decent profit margin for the business. Without this knowledge, they may set a selling price that is too low or too high, resulting in financial loss or unattractive pricing to customers respectively.

Managers' Knowledge on Unit Cost Helps in Setting Reasonable Selling