Price fluctuations can affect profitability. Is this statement correct?
A.
Yes, if the product's costs increase and the price does not
B.
No, only decisions made by the chief executive affect the price
C.
No, price is not related to profitability
D.
Yes, as sales may drop if the product is price inelastic
The Answer Is:
A
This question includes an explanation.
Explanation:
Profitability is impacted when product costs rise without corresponding price adjustments. Understanding cost-price relationships is key to managing profitability in procurement.
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