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Question : Which of the following statement is correct?
Statement 1: At the time of price fixation a certain amount of profit is added to the cost of production.
Statement 2: Purchasing power of customer should be taken into consideration.

Option 1: Both are true 

Option 2: Both are false

Option 3: Statement 1 is true and statement 2 is false.

Option 4: Statement 1 is false and statement 2 is true.

 


Team Careers360 15th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Both are true


Solution : Usually at the time of price fixation a certain amount of profit is added to the cost of production. If company's objective is to earn higher profit it may add higher amount of it. Purchasing power of customer is a factor while determining the price of a procduct. It should be taken into consideration while fixing a price of product or a services.

Hence, option A is correct.

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