In Order to Be Able to Price- Discriminate, Firms Need

question 80

Multiple Choice

In order to be able to price- discriminate, firms need:

• A)government approval.
• B)competitors willing to form a cartel.
• C)market power.
• D)inventive economists.

Learn about customer reservation handling and overcoming objections in sales.

Understand the significance of being the frontline emissary for a company.

Know the components and importance of the personal selling process.

Realize the ethical and legal responsibilities in sales.

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Definitions:

Variable Overhead Efficiency Variance

The difference between the actual variable overhead incurred and the standard cost allotted for the actual production achieved, indicating the efficiency of utilizing variable resources.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, valued at standard cost.

Favorable

A term used in variance analysis indicating that actual costs were lower than budgeted or standard costs, leading to higher profits.

Unfavorable

A term used in variance analysis to describe a situation where actual results are worse than expected results, often leading to a negative impact on financial performance.