An Example of Price Discrimination Is the Price Charged For

question 78

Multiple Choice

An example of price discrimination is the price charged for:

• A) coffee.
• B) college admission.
• C) cashmere sweaters.
• D) cough syrup.

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Definitions:

Cash Cycle

The duration between the initial investment in inventory and receiving cash from sales of the inventory.

Accounts Payable Period

The average period it takes for a company to pay off its suppliers, calculated by dividing accounts payable by the average daily purchases.

Operating Cycle

The time period that starts with the purchase of raw materials and ends with the collection of receivables generated from sales, measuring how long it takes for a business to turn expenditures into cash from sales.

Inventory Turnover

A ratio indicating how many times a company has sold and replaced inventory over a specific period, showing efficiency in managing stock.