152k views
2 votes
Determining the price of goods should be done after calculating income and expenditure ??​

User Goodies
by
5.0k points

1 Answer

8 votes

Answer:

False

Step-by-step explanation:

There are several methods that businesses use to determine the price of goods and services. The most common one involves first calculating the cost of production or the cost of goods sold. The desired markup is added to the cost. Other methods include the break-even analysis, target prices, and going by the market rate.

In all these methods, the price is determined selling starts. It means the price is set before selling starts. Therefore, income cannot be generated before a price is determined.

User Sarasvati
by
5.3k points