If a woman does not know the correct cost of her work, what is the biggest risk?
Answer and explanation
Correct answer: She may sell the product or service below its cost
When the correct cost is unknown, she may fail to include the costs of materials, labour, transport and other expenses in the price. As a result, she may sell the product or service below its cost and incur a loss instead of earning a profit. Charging too much can also affect sales, but underpricing is the most direct risk of not knowing the cost. Exam tip: Include all direct and indirect expenses in the cost price before fixing the selling price.
Frequently asked questions
What is the correct answer to this question?
She may sell the product or service below its cost
Why is this the correct answer?
When the correct cost is unknown, she may fail to include the costs of materials, labour, transport and other expenses in the price. As a result, she may sell the product or service below its cost and incur a loss instead of earning a profit. Charging too much can also affect sales, but underpricing is the most direct risk of not knowing the cost. Exam tip: Include all direct and indirect expenses in the cost price before fixing the selling price.
Which subject and chapter does this question cover?
This is a Class 11 Home Science question. Chapter: Work, Livelihood and Career. Topic: Women and work: issues and concerns.
