Difference Between Cost and Price Quiz

Managers use costing to determine producibility, profit potential, and whether a design should be added to the production line.

To estimate and determine the total cost of producing a garment, including materials, labor, transportation, and general expenses.

The process of costing involves calculating all the expenses involved in producing and selling a product.

<p>Pricing is the process of determining the exchange value of goods for sale.</p> Signup and view all the answers

<p>Costing is important to estimate the total resource investment required to merchandise, produce, and market a product.</p> Signup and view all the answers

<p>Costing contributes to decision-making by providing insights on producibility, profit potential, and line budget planning.</p> Signup and view all the answers

<p>Cost is the total amount of money invested in a product. Price is the amount of money asked/received in exchange for a product.</p> Signup and view all the answers

<p>The difference between the price and the cost of a product determines the profit or loss on that product.</p> Signup and view all the answers

<p>Revenue is the total of all receipts from the sale of the firm's products during a stated time period. Revenue must exceed costs for a firm to make a profit.</p> Signup and view all the answers

<p>Understanding the difference between cost and price is crucial for businesses to effectively manage profit and loss.</p> Signup and view all the answers

<p>For a firm to be profitable, revenue generated from product sales must exceed the costs incurred in producing those products.</p> Signup and view all the answers

<p>Apparel costing helps management take suitable decisions by providing insights into cost classification, cost control, and profitability.</p> Signup and view all the answers

<p>To classify and sub-divide costs, control materials, labor, and overhead costs, aid in decision-making, create an expansion strategy, ensure optimum profitability, and help manage seasonal variations in volume and costs.</p> Signup and view all the answers

<p>Costing aids in developing an expansion strategy by providing insights into costs, profitability, and seasonal variations.</p> Signup and view all the answers

<p>Ensuring optimum profitability through costing helps businesses stay competitive and financially sustainable.</p> Signup and view all the answers

<p>Costing helps management take suitable steps to address seasonal variations by analyzing costs and adjusting strategies accordingly.</p> Signup and view all the answers

<p>Classification and sub-divisions of costs, control of materials, labor, and overhead costs, aiding in decision-making, creating an expansion strategy, ensuring optimum profitability, and managing seasonal variations in volume and costs.</p> Signup and view all the answers