An auditor would most likely be concerned with internal control policies and procedures that provide reasonable assurance about the
a. Efficiency of management's decision-making process
b. Appropriate prices that the entity should charge for its products
c. Methods
Answers
Explanation:
An effective decision can be defined as an action you take that is logically consistent with the alternative you perceive, the information you get and the preference you have. But how to make effective and efficient decisions in the face of today's complexity and uncertainty.
A Cost-Based Pricing Example
Suppose that a company sells a product for $1, and that $1 includes all the costs that go into making and marketing the product. The company may then add a percentage on top of that $1 as the "plus" part of cost-plus pricing. That portion of the price is the company's profit.
Seven ways to price your product
Know the market. You need to find out how much customers will pay, as well as how much competitors charge. ...
Choose the best pricing technique. ...
Work out your costs. ...
Consider cost-plus pricing. ...
Set a value-based price. ...
Think about other factors. ...
Stay on your toes.