An external issue to be considered when setting a price is
a. the quality of competing products or services.
b. the quality of materials and labor.
c. a price geared toward a minimum return on investment.
d. the total costs of the product or service.
A
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What measures how well the solution will be accepted in a given organization?
A. Political feasibility B. Operational feasibility C. Legal feasibility D. Schedule feasibility
Market value ratios indicate:
A. ?the effect of liquidity, asset management, and debt management on operating results. B. ?how much debt the firm has and whether it can take on more debt. C. ?the firm's ability to meet its current obligations. D. ?how effectively a firm is managing its assets. E. ?what investors think of the company's future prospects based on its past performance.
Many companies have to monitor closely certain ratios, such as the current ratio, due to debt covenants. Selected transactions are provided below for a company that uses a perpetual inventory system; sells its merchandise at a selling price that exceeds cost; and had a current ratio of 1.85 and a quick ratio of 1.19 before the event occurred.
Required:In the above table, indicate whether each transaction would increase (+), decrease (?), or not affect (0) the company's current ratio and quick ratio.
What will be an ideal response?
Discuss the iceberg principle.
What will be an ideal response?