‘The value of a commodity or service measured in terms of the standard monetary unit’ describes:

‘The value of a commodity or service measured in terms of the standard monetary unit’ describes:
A . Value for money
B . Price
C . Value added
D . Cost

View Answer

Answer: B

Explanation:

The definition shown refers to the word ‘price’. The price is what someone will pay for something – the extent to which a customer values something – and the reference to the standard monetary unit refers to, for example, a dollar, a Euro, a dinar or whatever.

The other answers are, to some extent, intended to confuse, as they use some of the words shown in the definition. Care must be taken not to jump to a conclusion here.

The response ‘cost’ should give pause for thought, as, in a sense, the cost of doing or making some-thing may have value. But value is determined by the customer – this definition is a reference to the value the customer would pay – the price.