A Company That Raises Its Prices Is Most at Risk

question 32

Multiple Choice

A company that raises its prices is most at risk of being accused of which of the following?

• A)price discrimination
• B)high- low pricing
• C)retail price maintenance
• D)price gouging
• E)predatory pricing

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Definitions:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as products, departments, or projects.

Other Support Department

Units within an organization not directly involved in core operations but that provide essential services or support to primary operations departments.

Variable Costing

An accounting method in which variable costs are charged to cost units and fixed costs are treated as period costs, affecting profit calculation for the period.

Absorption Costing

A costing technique that incorporates all costs associated with manufacturing a product, including direct materials, direct labor, along with both variable and fixed overhead expenses.