Many Service Businesses Use Off-Peak Pricing, Which Consists of Charging

question 25

Multiple Choice

Many service businesses use off-peak pricing, which consists of charging different prices during different times of the day or days of the week to reflect:

• A)deviations from standard profit policies.
• B)variations in demand for the service.
• C)variations in costs of delivering service.
• D)holidays and other special promotional events.

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Definitions:

Current Prices

Prices of goods, services, or assets at the current time, without adjustment for inflation.

Goods In Transit

Items that have been shipped by a seller but not yet received by the buyer, thus in the process of being transported.

Consignment

A business arrangement where goods are left in the possession of another party to sell, but ownership remains with the supplier until sold.

F.O.B. Destination

Seller pays or is responsible for the cost of freight to purchaser’s location or destination.