Question

Hailey needs to identify internal costs so she can price her product accordingly. Which cost will be part of Hailey’s calculation?


A.

cost of endangering species

B.

cost of deforestation

C.

cost of air pollution

D.

cost of disposing by-products

E.

cost of employees (labor)

Answer 1

d cost of disposing by product

Answer 2

Hailey should be considering options D and E for cost considerations for internal purposes.

This is because, both waste disposal and cost for labor are internal costs which go into managing a business.

On the other hand aspects such as deforestation, air pollution and endangered species are wide scale global factors, and are external in nature.

Therefore they shouldn't be considered as internal factors in running a business.