The Three Largest Manufacturers of Telecommunications Wire Conspired Together So

question 56

Multiple Choice

The three largest manufacturers of telecommunications wire conspired together so that all three firms would charge the same price for coaxial cables. This is an example of

• A)deceptive pricing.
• B)price discrimination.
• C)price fixing.
• D)predatory pricing.
• E)price inflation.

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Definitions:

Variable Costing

An accounting method that only considers variable costs for product costing, excluding fixed overheads.

Net Operating Income

Net operating income is the total profit a company generates from its operations, excluding taxes and interest, highlighting operational efficiency.

Absorption Costing

An accounting tactic where the entirety of manufacturing costs—direct materials, direct labor, and manufacturing overhead, both variable and fixed—are included in calculating a product’s cost.

Unit Product Cost

The total expense incurred to produce and deliver one unit of a product, including both direct and indirect costs.