Price Discrimination Is Permitted When It Can Be Justified Under

question 63

Multiple Choice

Price discrimination is permitted when it can be justified under each of the following basis EXCEPT:

• A) differences in grade or quality sold.
• B) differences in transportation costs.
• C) lowering of price in good faith to meet competition.
• D) products that will be resold to another intermediate purchaser or to the final consumer.
• E) differences in quantity sold.

---

Definitions:

Accumulating

The process of gathering or collecting items over a period of time.

Allocating

The process of distributing resources or expenses among departments, projects, or activities based on set criteria or methods.

Direct Materials Inventory

Raw materials that can be directly attributed to the production of finished goods, physically incorporated into the product.

Direct Labor

The labor costs directly attributed to the production of goods or services, such as wages paid to workers specifically engaged in manufacturing processes.