Which of the Following Is the Best Description of Price

question 149

Multiple Choice

Which of the following is the best description of price discrimination?

• A) setting different prices for different products
• B) charging different prices for quantity amounts
• C) using variable costing for some products and full costing for other products when setting prices
• D) charging different prices to different customers or clients for the same products or services

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Definitions:

Fixed Costs

Fixed overheads, including rental costs, salary payments, and insurance fees, that stay unchanged with fluctuations in production or sales figures.

Required Units

The quantity of products or services that must be produced or sold to meet a specific target or fulfill a certain demand.

Variable Expenses

Costs that change in proportion to the activity or volume of operations in a business.

Net Income

The profit of a company after all expenses and taxes have been deducted from total revenue.