Single-Price Selling

question 41

Multiple Choice

Single-price selling:

• A) removes price comparisons from the buyer's decision-making process
• B) does not benefit the retailer
• C) is most effective when used during an inflationary period
• D) encourages clerical errors
• E) is accurately described by none of these choices

---

Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process, often used to allocate labor costs to products.

Quantity Variances

The difference between the expected and actual number of units used or produced, which can affect costing and budgeting assessments.

Price Variance

The difference between the actual price paid for a purchase and the standard or expected price, usually applied to direct materials or direct labor costs.

Quantity Variance

A measure of the difference between the expected and actual quantities used in production, affecting materials or labor.