Your Local Instant Photocopying Service Charges 10 Cents a Copy

question 193

Multiple Choice

Your local instant photocopying service charges 10 cents a copy up to 25 copies, 9 cents a copy for 26 to 99 copies, and 8 cents a copy for 100 copies or more. What kind of adjustment to its list or quoted price of 10 cents per copy is the photocopying service using?

• A) experience-curve pricing
• B) loss-leader pricing
• C) a quantity discount
• D) a promotional discount
• E) everyday low pricing

Apply manufacturing overhead to jobs using the calculated predetermined overhead rate.

Distinguish between indirect costs that are difficult to trace to a particular job from those that are not.

Assess the impact of estimated activity level on the spread of fixed costs and the costing of unused capacity.

Identify the factors that influence the selection of a base for assigning overhead costs.

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Definitions:

Male Condom

Contraceptive device, usually made of latex, that fits over the male penis.

Spermicidal Jellies

Contraceptive products used to immobilize or kill sperm, designed to be applied inside the vagina to prevent pregnancy.

Intrauterine Device

A small T-shaped device inserted into the uterus to prevent pregnancy by changing the way sperm cells move so they cannot reach an egg.

Chlamydia

A common sexually transmitted infection caused by the bacterium Chlamydia trachomatis.