A Company Involved in Data Mining Probably Wants to

question 30

Multiple Choice

A company involved in data mining probably wants to

• A) find new ways of squeezing profits out of old products.
• B) outsource its IT function.
• C) form a strategic alliance with a mining company.
• D) make additional use of information already on hand.

Discuss the purpose and arguments for and against antitrust laws.

Understand the enforcement mechanisms and penalties associated with the Sherman Act.

Describe what constitutes price discrimination under antitrust law.

Explain the components and violations related to the Sherman Act and Clayton Act.

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Definitions:

Absorption Costing

This approach to accounting incorporates all costs associated with manufacturing such as direct materials, direct labor, and variable as well as fixed overhead expenses into the price of a product.

Operations

Refers to the day-to-day activities involved in running a business that lead to the production of goods and provision of services.

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in product costs.

Absorption Costing

A bookkeeping technique that encases the entirety of manufacturing expenses such as direct materials, direct labor, along with both variable and fixed overhead costs, in the product’s cost.