Which of the Following Is an Example of Price Discrimination

question 30

Multiple Choice

Which of the following is an example of price discrimination?

• A) Nestlé provides money off coupons for its products.
• B) Gautrain offers a lower price for weekend travel compared to weekday rates on the same routes.
• C) Hotel rates for members of the AA are lower than for non-members.
• D) All of the above are correct.

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Definitions:

Budgeted Finished Goods

An estimate of the finished goods a company plans to produce over a certain period as part of its budgeting process.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods in a specific period, including materials, labor, and overhead.

Inventory

The raw materials, work-in-progress (WIP), and finished goods that a company holds for the purpose of sale in the ordinary course of business.