Describe When Each of the Following Five Business-To-Business Pricing Tactics

question 18

Essay

Describe when each of the following five business-to-business pricing tactics would be most appropriate:
• seasonal discounts
• cash discounts
• allowances
• quantity discounts
• uniform delivered versus zone pricing

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Definitions:

Standard Cost System

A cost accounting system that uses cost estimates for materials, labor, and overhead to assess performance by comparing these standard costs to actual costs incurred.

Work in Process

Inventory comprising goods that are in the production process but not yet completed.

Raw Material

Basic materials used in the production process to manufacture goods, often processed in multiple stages to produce the final product.

Predetermined Overhead Rate

A rate established in advance used to apply manufacturing overhead costs to products based on a certain activity base.