Cost acconting CHAPTER 12.docVIP

PAGE  12-PAGE 7 CHAPTER 12 PRICING DECISIONS AND COST MANAGEMENT TRUE/FALSE 1. Companies must always examine pricing decisions through the eyes of their customers. 2. Relevant costs for pricing decisions include manufacturing costs, but not costs from other value-chain functions. 3. In markets with little or no competition, the key factor affecting price is costs, not customers’ willingness to pay or competitors. 4. When prices are set in a competitive marketplace, product costs are the most important influence on pricing decisions. 5. Customers prefer stable and predictable prices