MULTIPLE CHOICE 1. According to the text, price is best described as: a. the perceived value of a good or service b. exchanged for a good or service c. the psychological results of purchasing d. the cost in dollars for a good or service as set by the producer e. the value of a barter good in an exchange ANS: A PTS: 1 REF: 255 OBJ: 17-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 2. Revenue: a. equals quantity sold profit margin b. equals price minus costs c. equals return on investment d. is synonymous with profit e. equals price of goods times quantity sold ANS: : 1 REF: 255 OBJ: 17-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 3. _____ pay for every activity of the company. a. Revenues b. Investments c. Retained earnings d. Profits e. Prices ANS: A Revenue is price times units sold, or the total inflow of capital that is available to pay for the costs of manufacturing the good and running the business. PTS: 1 REF: 255 OBJ: 17-1 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 4. Money that is left over after paying for company activities is called: a. return on investment b. a contribution margin c. profit d. net worth e. a current asset ANS: C PTS: 1 REF: 255 OBJ: 17-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
MULTIPLE CHOICE 1. According to the text, price is best described as: a. the perceived value of a good or service b. exchanged for a good or service c. the psychological results of purchasing d. the cost in dollars for a good or service as set by the producer e. the value of a barter good in an exchange ANS: A PTS: 1 REF: 255 OBJ: 17-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 2. Revenue: a. equals quantity sold profit margin b. equals price minus costs c. equals return on investment d. is synonymous with profit e. equals price of goods times quantity sold ANS: : 1 REF: 255 OBJ: 17-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing 3. _____ pay for every activity of the company. a. Revenues b. Investments c. Retained earnings d. Profits e. Prices ANS: A Revenue is price times units sold, or the total inflow of capital that is available to pay for the costs of manufacturing the good and running the business. PTS: 1 REF: 255 OBJ: 17-1 TYPE: Comp TOP: AACSB Reflective Thinking | TB&E Model Pricing 4. Money that is left over after paying for company activities is called: a. return on investment b. a contribution margin c. profit d. net worth e. a current asset ANS: C PTS: 1 REF: 255 OBJ: 17-1 TYPE: Def TOP: AACSB Reflective Thinking | TB&E Model Pricing
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