A Store Provides 10 Percent Discount on All Items with a Price

question 78

Multiple Choice

A store provides 10 percent discount on all items with a price of at least $100. No discount is otherwise applicable. Which of the following DOES NOT correctly compute the discount?

• A) double discount = 0;
• If (price >= 100)
• {
• Discount = 0.10 * price;
• }
• B) double discount = 0.10 * price;
• If (price <= 100)
• {
• Discount = 0;
• }
• C) double discount;
• If (price < 100)
• {
• Discount = 0;
• }
• Else
• {
• Discount = 0.10 * price;
• }
• D) double discount = 10;
• If (price >= 100)
• {
• Discount = 0.1 * price;
• }
• Else
• {
• Discount = 0;
• }

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Definitions:

Management Decisions

These are choices made by the executives of a company affecting its direction and operation.

Planning Horizon

The future time period over which plans are made and resources are allocated.

High-Low Method

A method of separating a mixed cost into its fixed and variable elements by analyzing the change in cost between the high and low activity levels.

Fixed Component

A portion of the total costs that remains unchanged regardless of the level of activity or production volume.