Price Discrimination Is the Practice of

question 73

Multiple Choice

Price discrimination is the practice of

• A)charging different prices for the same good when the price differences are not due to differences in cost.
• B)charging different prices for the same good when the price differences arise because of differences in cost.
• C)charging different prices for different qualities of a product.
• D)charging higher prices for brand-named goods and lower prices for generic versions of the goods.

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Definitions:

Standard Costs

Predetermined costs for material, labor, and overhead used as benchmarks for measuring performance.

Direct Labor Time Variance

The difference between the actual hours spent on production and the standard hours expected, multiplied by the standard hourly wage rate.

Actual Costs

are the genuine expenditures incurred in the production or acquisition of goods and services, as opposed to estimated or standard costs.

Standard Costs

Pre-determined or benchmark costs for products, operations, or activities, used for budgeting purposes and performance evaluation against actual costs.