You'll get a detailed solution from a subject matter expert that helps you learn core concepts. The shampoo used to groom pets The yarn used to make a scarf Which of the following are examples of fixed costs? A total-cost curve shows the relationship between the. Which of these assumptions is often realistic for a firm in the short run? Expense that CHANGES from month to month. Fuel cost. When this occurs, Al's Radiator Company encounters, Suppose Jan started up a small lemonade stand business last month. Sensing market demand for the electric toothbrush, Elmo started with an ideal selling price of $3 based on customer value considerations and then targeted costs to ensure that the price was met. ________ pricing uses buyers' perceptions of value as the key to pricing. Wages for unskilled labor. If you continue to use this site we will assume that you are happy with it. Fixed Cost is definite; it will incur even when there is no units are produced. Although the additional features increased the price of the laptops by $500, Pegasus was confident that the strategy would help boost demand for its laptops substantially. A downward-sloping experience curve is indicative of ________. Which of the following is most likely a fixed cost? Expense that stays the SAME from month to month. 1 Which one of the following is a fixed expense? Fixed costs that are difficult to change in the short term and that relate to the investment in facilities, equipment, and basic organizational structure of a firm What is Discretionary Fixed Costs? Jackie has no additional costs. These costs do not change with a property's occupancy rate. Variable Expense. Which of the following is an internal factor that affects pricing decisions in a company? Target return pricing uses the concept of a(n) ________, which shows the total cost and total revenue expected at different sales volume levels. Is raw materials a fixed cost? This exemplifies ________. Which of the following is a cost-based approach to pricing? She had the option of renting the space out for $\$ 2,000$a year if she didn't utilise it as her office for business. A. Fixed Cost: A fixed cost is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold. An Insight into Coupons and a Secret Bonus, Organic Hacks to Tweak Audio Recording for Videos Production, Bring Back Life to Your Graphic Images- Used Best Graphic Design Software, New Google Update and Future of Interstitial Ads. This is an example of a(n) ________. Internet expenses, etc. ________ is the only element in the marketing mix that produces revenue. Variable costs may include labor, commissions, and raw materials. No individual shop dares charge more than the going price without fearing loss of business to other shops. Which of the following involves setting prices based on a rival firm's strategies, costs, prices, and market offerings? A) Direct materials cost B) Direct labor cost C) Straight-line . To an economist, it is conceivable that the objective that motivates an individual entrepreneur to start a business arises from. Which of the following statements best captures the nature of the underlying production function? \begin{matrix} On the other hand, variable cost remains constant in per unit. More : Which of the following is most likely a fixed cost? 7 What is an amortization expense on an insurance policy? Experience-curve pricing assumes that ________. Total profit for the XYZ corporation would be. $$. Average fixed costs are total fixed costs divided by the number of units of output, that is, fixed cost per unit of output. A no-frills airline, it charges for all other additional services, such as baggage handling and in-flight refreshments. 2. Which of the following is an external factor that affects pricing decisions in a company? In Via del Mar, Chile, a large number of shops specialize in selling the same quality of seafood products along the beach frequented by tourists. per unit. Property Taxes. This is an example of ________ pricing. Promotion Management salaries B. XYZ corporation produced 300 units of output but sold only 275 of the units it produced. total cost divided by the number of units produced. \text{Work in process, Dec. 31, 2016} \ldots\ldots\ldots & \text{157,600}\\ -$3,875. take advantage of the discount. Fixed operating expenses are the actual costs associated with operating a property that do not vary in the short term. Wages paid to workers however can vary as the number of workers increase or decrease. Examples of fixed expenses Rent or mortgage payments. b. capital received in excess of the par value of issued shares. This exemplifies ________. Total Fixed Costs A company's total fixed costs are the sum of all fixed, non-variable expenses it must pay. C. variable expense per unit increases. Which example is a fixed expense quizlet? Within the relevant range, if there is a change in the level of the cost driver then A. Answers: Expenditures for raw material. Total fixed costs and total variable costs will remain the same C. straight-line depreciation, insurance, property taxes, supervisory salaries, admin salaries, advertising, rent, Since fixed costs remain constant in total, the average fixed cost per unit becomes progressively smaller as the level of activity increases. This reflects Bon Vivant's ________ pricing strategy. uhc 2023 certification quizlet The average cost for rack and pinion replacement is between $1,528 and $1,843. Marginal costs are a function of the total cost of production, which includes fixed and variable costs. If a business employs a usage-based depreciation methodology, then depreciation will be incurred in a pattern that is more consistent with a variable cost. Which of the following is true of value-based pricing? Which of the following is a fixed cost? If Gallo's produces at a rate of 78 corks per hour, what is the total machine cost per day? A fiscal year at a total cost of an advertising campaign dedicated to one specific is. To obtain the break-even point in terms of dollar sales, total fixed expenses are. Which of the following pricing strategies is the pharmaceutical company most likely using in this instance? She proposes 3/15, n/20 and believes that 75% of the customers will Does Firm A exhibit economies or diseconomies of scale? Companies that adopt value-added pricing ________. We can also conclude that fixed costs are not relevant for production decisions. Fixed costs of production are constant, occur regularly, and do not change in the short-term with changes in production. and also improve cash flow. Which of the following is true with regard to pure competition? Your electric bill will be higher in the winter if you live in a colder climate and lower in the summer months. Despite the availability of many low-priced products in the market, customers seem to prefer DivetheBlue, which has earned a reputation for selling high-quality products. A production function is a relationship between, The magical product of labor can be defined as. CONTINUE READING BELOW What are 4 examples of fixed costs? When marginal cost is less than average total cost. When companies set prices, the government and social concerns are ________ factors affecting pricing decisions. The break-even volume is the point at which ________. Building depreciation Charitable contributions C. Management training Property taxes D. Equipment rentals Equipment depreciation E. Research and development Advertising How are marginal costs and average fixed costs related quizlet? What is the difference . PoolPak produces climate-control systems for large swimming pools. How much overall income would give Jackie a profit of exactly zero economically. Assuming that the unit sales are unchanged, the total contribution margin will decrease if: A. fixed expenses increase. This is the gradual charging to expense of the cost of an intangible asset (such as a purchased patent) over the useful life of the asset. During 2019, Parker sold 1,500 units at an average of $500 Experts are tested by Chegg as specialists in their subject area. Refer to Figure 13-3. Other loan payments. In other words, fixed costs are locked in place as long as operations stay within a certain size. c. retained earnings. Expert Answer. The average cost of production for each unit of output produced was $100. 6 Whats the difference between fixed and variable expenses? Department stores such as Kohl's and Macy's practice high-low pricing by ________. d. fair value differences. Can partners limit the right of a partner to commit their partnership to contracts? Explain why the sales discount policy might improve cash b. .Advertisements. See Answer Which of the following is a fixed cost? D) They are fixed per unit and vary in total., Which of the following is a fixed cost? Which of the following is an implicit cost? $$ The average cost of production for each unit of output produced was $100. Which of the following is true about the demand curve? This exemplifies ________. What would the average fixed cost be if ten units were produced? Each worker at Gallo's cork factory costs $12 per hour. c 7. John has decided to start his own lawn-mowing business. Under ________, the market consists of many buyers and sellers who trade over a range of prices rather than a single market price. This range does not include taxes and fees, and does not factor in your specific vehicle or unique location. Committed Discretionary A. Click the card to flip (A good example of this is your electric bill. If a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would. Fixed cost arising from annual decisions by management to spend in certain areas, such as advertising and research Can such an agreement be binding *(a)* on the partners and *(b)* on outsiders? Following joint replacement labor, direct materials and labour prices spike, causing inflation wages. A discretionary fixed cost is an expenditure for a period-specific cost or a fixed asset, which can be eliminated or reduced without having an immediate impact on the reported profitability of a business. The company justifies the high price of the drug by claiming that it is highly effective for treating all kinds of ulcers. Examples of fixed cost are rent, tax, salary, depreciation, fees, duties, insurance, etc. We use cookies to ensure that we give you the best experience on our website. The minimum points of the average variable cost and average total cost curves occur where. Parkers controller suggests that a generous sales discount policy would increase annual sales to 2,000 units Which of the statements below is most consistent with the shape of the total cost curve? Refer to Figure 13-2. They are one of three types of costs incurred by most businesses. Utilities the cost of electricity, gas, phones, trash and sewer services, etc. In other words, it is a cost that remains constant, even as output rises. The learning curve is representative of the ________. Fixed costs may include lease and rental payments, insurance, and interest payments. How to Market Your Business with Webinars? If Gallo's produces at a rate of 35 corks per hour, what is the total labor cost per hour? Insurance payment of the equipment in the store. Assume the number of machines does not change. Total fixed costs remain the same, within the relevant range. The company also claims that the new drug will help bring down the need for invasive surgeries, an additional benefit for patients. A fixed variable expense is a cost that you pay every month, but the amount can change from month to month. What sets the ceiling for product prices? In which situation is the market dominated by one seller? Which of the following shows the number of units the market will buy in a given time period, at different prices that might be charged? In industrial markets, ________ typically has the final say in setting the pricing objectives and policies of a company. Total mixed cost . Definition: A fixed cost is an expense that does not change as production volume increases or decreases within a relevant range. Fixed costs are expenses related to your company's products or services that must be paid regardless of sales volume. B) They are fixed in total. Question: Which of the following is a fixed cost? She operates the company out of a home office. What is the conjugate percent of $48\%$? 1 / 44 XYZ corporation produced 300 units of output but sold only 275 of the units it produced. There are not many discretionary fixed costs, but they can be quite large, and so are worth considerable ongoing review by management. Each of the 275 units sold was sold for a price of $95. The long-run average cost (LRAC) curve indicates the ________. Fixed costs are the costs that remain fixed in a period of time regardless of either your business is making profits or not, or your sales reach the target or not. Overhead is one type of fixed cost. To purchase the mowers and the trailer to transport the mowers, John withdrew $1,000 from his savings account, which was earning 3% interest, and borrowed an additional $2,000 from the bank at an interest rate of 7%. \text{Direct labor} \ldots\ldots\ldots & \text{63,150}\\ Food, for example, can be a variable personal expense, with people spending more or less each month. Depreciation. Fixed costs that are difficult to change in the short term and that relate to the investment in facilities, equipment, and basic organizational structure of a firm, Fixed cost arising from annual decisions by management to spend in certain areas, such as advertising and research. Each of the 275 units sold was sold for a price of $95. Hence it is not considered as a fixed cost. This is the gradual charging to expense of the cost of a tangible asset (such as production equipment) over the useful life of the asset. Why is markup pricing most likely popular? When McDonald's and other fast food restaurants offer "value menu" items at surprisingly low prices, they are most likely using ________ pricing. Jackie is aware that if she didn't own her own business, she could go back to her prior position at a significant software company, where she would receive a salary of $\$ 60,000$annually. g(x, y)=\frac{y}{x}+\frac{x}{y} ; g(1,2), g(2,-3) Which one of the following is a fixed expense? Lawyers, accountants, and other professionals typically price by adding a standard markup for profit. Fixed costs have to be paid at any cost. Which of the following is the right formula for calculating total mixed cost? She upgrades her computer hardware at a cost of $\$ 5,000$per year in order to stay current with new technology. When marginal cost exceeds average total cost, Total cost can be divided into two types of costs. However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output. Straight-line depreciation, insurance, property taxes, rent, supervisory salaries, administrative salaries, and advertising are all examples of fixed costs. Target return pricing is a variation of which of the following cost-oriented pricing approaches? The term reserves is used under IFRS with reference to all of the following except: B. 30) A company must pay each month's bills for rent, heat, interest, and executive salaries regardless of the company's level of output. Refer to Table 13-3. ________ involves setting prices based on the costs for producing, distributing, and selling the product plus a fair rate of return for effort and risk. In the long run for Firm A, total cost is $105 when output is 3 units and $120 when output is 4 units. Wages for unskilled labor. This exemplifies ________. As production workers become better organized and more familiar with equipment, the average cost per unit tends to decrease with the ________. Study with Quizlet and memorize flashcards containing terms like 1. C) Value-based pricing involves setting prices based on the costs of producing, distributing, and selling the product plus a fair rate of return for its effort and risk. This exemplifies ________. I've been asked to discuss the strengths and weaknesses of the correlational and experimental research designs. $11.72$\div$ 510, Prepare the 2017 schedule of cost of goods manufactured for Barton Company using the following information. What is John's annual opportunity cost of the financial capital that has been invested in the business? What are fixed costs in business? Total fixed costs and total variable cost will change B. Who are the experts? Price setting is usually determined by ________ in small companies. Here are several examples of fixed costs: Amortization. In producing the 7,000 staplers, the firm's average variable cost was. Direct materials cost C. Direct labor cost D. Straightminusline depreciation expense This problem has been solved! Fixed Expense. 100) DivetheBlue, a company marketing deep-sea diving equipment, charges very high prices for its products. A complement of a percent is the difference of $100\%$ and the given percent. Total profit for the XYZ corporation would be a. A decision to position the product on high-performance quality will mean that the ________. Which of the following is true of a pure competitive market? We review their content and use your feedback to keep the quality high. In an effort to differentiate its offerings from its competitors, Pegasus Computers decided to add an extra USB port in all its laptops besides providing a free pair of Delphi power bass headphones with every Pegasus laptop. Elmo Inc., a global conglomerate, designed the ElBrush, an electric toothbrush. Fixed costs do not vary with the production level. Depreciation is a fixed cost, because it recurs in the same amount per period throughout the useful life of an asset. View complete answer on realized1031.com Which of the following is considered an operating expense? D. variable expense per unit decreases. A pharmaceutical company in Utah recently released a new and expensive anti-ulcer drug in the market. How much total revenue must Jackie generate to meet her accountant's definition of break-even? Which is an example of a fixed expense quizlet? A fixed cost, on the other hand, is a cost that a company must pay regardless of whether it produces one or a million goods. The larger the output, the greater the quantity of output over which fixed cost is spread, leading to lower average fixed cost . a government payment that supports a business or market. 13) Which of the following processes does value-based pricing reverse? However, utilities are generally considered fixed costs, since the company must pay a minimum amount regardless of its output. Gallo's cork factory experiences diminishing marginal product of labor with the addition of which worker? Why is markup pricing most likely impractical? A. These include things like mortgage or rent payments, car payments, insurance premiums, utility bills, and the average amount you spend on groceries. He. For instance, Tom owns a small manufacturing company that makes parts for small jets. Which of the following is most likely a risk associated with experience-curve pricing? Companies can legitimately charge a higher price if ________. C.the fixed costs and the variable cost per unit will not change. Effective ________ pricing involves understanding how much value consumers place on the benefits they receive from the product and setting a price that captures that value. Rent is a fixed expense. The company can reasonably expect ________ to increase. By contrast, variable expenses can change. The cost of each machine is $20 per day regardless of the number of corks produced. Which of the following costs of publishing a book is a fixed cost? Variable expenses are inconsistent costs that vary depending on the choices you make. Rent, for example, is an example of a fixed cost that must be paid regardless of how many goods the company produces and sells. Descriptions: Which of the following is most likely a fixed cost? c. mixed costs What does fixed costs refer to in the formula: total cost = fixed cost + variable cost per activity x # activity? The cost of each machine is $20 per day regardless of the number of corks produced. To use for allocating indirect costs & quot ; indirect costs associated w ith each cost-allocation base, ( ). A computer for recording customer and order information A monthly fee for a flea market booth A radio ad What are variable costs? (A good example of this is your electric bill. Total mixed cost = (Variable cost per unit x Number of units) + Total fixed cost. PoolPak's prices are very high, but demand for its climate-control systems seems to be forever on the rise. See Answer See Answer See Answer done loading. Is manufacturing cost fixed or variable? Variable costs are described by which of the following statements? The perceived value of different product offers can be reasonably assessed by ________. This is an example of ________. As production moves up, the average cost per unit decreases because ________. With accumulated production experience and a higher volume of production, companies not only become more efficient but also ________. Fixed expenses are your weekly, monthly, or annual bills that dont fluctuate. Refer to Table 13-3. Which of the following best describes Azure Air's pricing method? Variable Expenses. \end{matrix} b. The simplest pricing method is ________ pricing. Under ________, the market consists of many buyers and sellers trading in a uniform commodity. Fixed Cost A cost that does not change of goods is produced Variable Cost cost that rises or falls depending on the quantity produced Total Cost cost of producing one more unit of a good Marginal fixed variable producing one more unit of a good Marginal Revenue Additional income from selling one more unit for a good sometimes equal to price In addition to overhead for your company's office or manufacturing facility, rent for that space may also be considered. Fixed costs can include property taxes, rent, salaries and the cost of benefits for non-sales and management personnel. For Firm A, when four units of output are produced, the total cost is $175 and the average variable cost is $33.75. Which is an example of a fixed cost business? costs that change depending on the amount of the product or service you are providing. These prices are neither limited-time offers nor special discounts, but represent the daily prices of products sold by Bon Vivant. Each unit cost Parker$350. Over the long run all costs have cost drivers D. Volume of production is a cost driver of direct manufacturing cost Answer: B 7. a. What is an amortization expense on an insurance policy? The movie industry in a country is controlled by six large studios that receive 90 percent of the annual revenues from movies. If a fixed cost is expressed on a per unit basis, it varies inversely with the level of activity. The Latest Innovations That Are Driving The Vehicle Industry Forward. \text{Work in process, Dec. 31, 2017} \ldots\ldots\ldots & \text{142,750}\\ Which of the following exemplifies a pure competitive market? This answer has been confirmed as correct and helpful. a. dependent variable b. independent variable c. slope parameter d. intercept parameter d. intercept parameter What does activity refer to in the formula: total cost = fixed cost + variable cost per activity x # activity? Answers: Expenditures for raw material. Fixed costs in accounting are costs that remain the same, and are not impacted by production levels. $490,000. A) They vary per unit. John assured his venture capitalists an earning of 25-percent return on equity when he began his IT startup. Utilities- the cost of electricity, gas, phones, trash and sewer services, etc. This exemplifies its ________ costs. Refer to Table 13-3. A fixed variable expense is a cost that you pay every month, but the amount can change from month to month. Variable costs may include labor, commissions, and raw materials. Fuel cost. Fixed selling expenses are $10,000 and variable selling and administrative expenses are $3 per unit. You'll get a detailed solution from a subject matter expert that helps you learn core concepts. 6. Consider a company that pays $10,000 per month for office space, $5,000 per month for machinery, and $1,000 per month for utilities. At present, Parker offers no sales discounts. What is an example of a fixed cost quizlet? A. This is a periodic premium paid under the agreement of policy. Compute Naple's net income under absorption costing. Question: which of the following is a fixed cost? Examples of fixed costs are rent and insurance payments, property taxes, and employee salaries. 5 What is the difference between a variable expense and a fixed expense quizlet? The company's customers are more concerned about service support for maintaining their systems than the initial price of the product. Refer to Figure 13-1. what are two key differences between Committed and Discretionary Fixed Costs? Round answer to the nearest tenth of a cent. It's a cost that remains constant, in total, regardless of changes in the level of activity within the relevant range. PoolPak specializes in and differentiates itself through both cutting-edge technologies used to build its high-value climate control systems as well as seamless quality service. Meanwhile, you always need to pay your electric, water, or any other utility bill, making it a fixed cost a staple in your budget.). B. fixed expenses decrease. If management incentives are tied to income under absorption costing, which of the following may occur. Bon Vivant offers an assortment of exclusive French wines at incredibly low prices. Which of the following is true with regard to price? What is the difference between a variable expense and a fixed expense quizlet? Fixed cost for a store can be: Store's Rent. In order to achieve this result, he will most likely use which of the following pricing approaches? How do I know what size my Redshift table is? **Required:** (Select 3 answers.) $$. Examples of variable cost are packing expenses, freight, material consumed, wages, etc. In producing the 7,000 staplers, the firm's average fixed cost was, Refer to Scenario 13-5. At what level of output will average variable cost equal average total cost? In industries in which pricing is a key factor, ________ often set the best prices or help others in setting them. Bruno Servers has decided to decrease its prices on its popular higher-range servers. Rent is a fixed expense. Property insurance is a common example of a fixed operating cost. Which of the following choices correctly classifies a committed fixed cost and a discretionary fixed cost? flow. c. $28,500. What can fixed costs sometimes be referred to? Depreciation cannot be considered a variable cost, since it does not vary with activity volume.However, there is an exception. Fixed costs are expenses that have to be paid by a company . Total fixed costs for the company would be $16,000 in this case. A) The targeted value and price drive decisions about what costs can be incurred and the resulting product design. Those two types are, Some costs do not vary with the quantity of output produced. Under oligopolistic competition ________. Which of the following involves introducing less-expensive versions of established, brand name products? net sales and gross margin. 4 Which example is a fixed expense quizlet? D. the fixed costs will remain the same, but the variable cost per unit may change. B) Value-based pricing is mostly product driven. ________ pricing involves charging higher prices on an everyday basis but running frequent promotions to lower prices temporarily on selected items. Alexander Holmes, Barbara Illowsky, Susan Dean, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, David R. Anderson, Dennis J. Sweeney, James J Cochran, Jeffrey D. Camm, Thomas A. Williams, Divide. \text{Factory overhead costs} \ldots\ldots\ldots & \text{24,000}\\ Fixed costs are unaffected by activity changes, unlike variable costs. This problem has been solved! Jackie is the owner and operator of a website design company. d. $30,000. Some of the business is like website design, tax preparation, etc. $$ On the other hand, companies where physical assets are required at large will have high fixed assets such as airlines, auto manufacturers, etc. Cost that does not change no matther how much of goods is produced, A cost that does not change of goods is produced, cost that rises or falls depending on the quantity produced, cost of producing one more unit of a good, fixed variable producing one more unit of a good, Additional income from selling one more unit for a good sometimes equal to price. Which of the following could explain why the total product curve shifted in this diagram? Each worker at Gallo's cork factory costs $12 per hour. If demand hardly changes with a small change in price, the demand is ________. Sales commissions expense B. \text{Direct materials} \ldots\ldots\ldots & \text{\$190,500}\\ Car payments. As Al's Radiator Company adds workers while keeping the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. Why does total contribution margin decrease if unit sales are unchanged? a. gains and losses on revaluation of property, plant, and equipment. How much total income must Jackie earn in order for her to desire to continue working for herself? Labor costs are estimated between $345 and $435 while parts are priced between $1,184 and $1,408. ________ refers to a measure of the sensitivity of demand to changes in price. Which of the following are a fixed cost of doing business? What total revenue would result in Jackie having an accounting profit of only zero? Price setting is usually determined by ________ in large companies. If demand changes greatly with a small change in price, the demand is ________. If the controller is correct, determine how much the new sales discount policy would add to Fixed costs are less controllable than variable costs because they aren't based on volume or operations. Cost of goods sold is $6 per unit. Refer to Figure 13-2. However, the fixed cost per unit decreases as production increases, because the same fixed costs are spread over more units . Those costs are called, Refer to Scenario 13-5. Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Fundamentals of Financial Management, Concise Edition. 1. Variable costs for Jan's lemonade stand now include the cost of, The amount by which total cost rises when the firm produces one additional unit of output is called. Fixed expenses are different from variable expenses because fixed expenses are consistent cost that need to be paid at specific times. What is a mental disorder characterized by binge eating followed by purging? Overhead costs ________ as the number of units produced increases. The experience curve reveals that ________. Property Taxes. Which of the following is true with regard to value-added pricing? Fixed costs are those which are fixed for the production period. Fundamentals of Financial Management, Concise Edition, Claudia Bienias Gilbertson, Debra Gentene, Mark W Lehman, Daniel F Viele, David H Marshall, Wayne W McManus, Don Herrmann, J. David Spiceland, Wayne Thomas, In Exercises $1$ through $16$, compute the indicated functional value. Multiple Choice. As the number of workers increases. Store's employees salary. Amortization expense of $10,000 will be incurred as a fixed cost in books. Car insurance can be a fixed expense as long as the policy holder avoids any incidents. Azure Air, an airline company, offers attractive prices to customers with tighter budgets. Whats the difference between fixed and variable expenses? As a manufacturer increases the price, ________. $26,125. Retailers such as Costco and Walmart charge a constant, daily low price with few or no temporary price discounts. which of the following is a fixed cost? For example, the cost of insuring the factory building is a fixed cost irrespective of the number of units produced within the factory. Can someone help me by describing each design? C) They decrease per unit as production volume increases. ________ pricing refers to offering just the right combination of quality and gratifying service at a fair price. ________ refers to the amount of money charged for a product or service. Parker Electronics sells cell phones. 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