Lucy Buys a New Dress at T

question 179

Multiple Choice

Lucy buys a new dress at T.J. Maxx that has a price tag with "Compare at $150.00. Our Price $89.99." This is an example of the use of

• A) internal referencing.
• B) cumulative discounts.
• C) seasonal discounts.
• D) base-point pricing.
• E) an external reference price.

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Definitions:

Volume-based Cost Driver

A factor that causes the cost of an activity or resource to increase, directly related to the volume of production or service delivery.

Indirect Manufacturing Costs

Expenses related to the production process that cannot be directly attributed to specific units of product, such as utilities, maintenance, and factory supervision.

Automation

The technology by which a process or procedure is performed with minimal human assistance.

Machine Hours

A metric for the total time machines or equipment have been operational, used to allocate manufacturing overhead costs.