O Computers Are Sold by Stores That Have Suggested Retail

question 432

True/False

O Computers are sold by stores that have suggested retail price lists to follow. Store X always offers the computers for 20% less than list price. The other stores tell O they will quit carrying its computers if X keeps selling them so cheaply. O quits selling computers to X, so as to not lose the other stores. This is probably not an antitrust violation.

---

Definitions:

General Factory

Typically refers to a manufacturing site where various goods are produced through a combination of human labor, machines, and processes.

Activity Cost Pool

A collection of all costs associated with a specific activity or process, used in activity-based costing to allocate indirect costs to products or services.

Overhead

Overhead refers to the ongoing business expenses not directly attributed to creating a product or service, including costs like rent, utilities, and insurance.

Direct Labor-Hours

The total hours worked by labor directly involved in the manufacturing process, crucial for calculating labor costs and efficiencies.