Besides the 'cost of goods', which of the following is NOT one of the three expense categories that must be remembered when determining selling price?

• A. Marketing
• B. Operational expenses
• C. Labor
• D. Profit

Answer: (A)

When setting selling price, you must cover the resources used to produce and deliver the item: the cost of goods, the labor involved, and the ongoing overhead or operational expenses. Then you add the desired profit you want to earn from the sale. Marketing costs, while important for the business, aren’t treated as a separate pricing category in this approach; they’re typically absorbed into overhead or handled as a separate strategic expense rather than a distinct price-determining line item. So marketing isn’t one of the three expense categories you memorize for calculating the selling price.