Question 25
Stock ValuationStock valuation is useful because it informs the sales department on the
- A.prices of the competing goods
- B.prices that will affect profitability
- C.number of goods to produce
- D.number of goods to sell.
Show the answer and explanation
Answer: B (prices that will affect profitability)
Explanation
Knowing the value of stock helps the firm set selling prices that give a profit.