Anthony Picked Up a Package of Paper Plates and Noticed

question 88

Multiple Choice

Anthony picked up a package of paper plates and noticed that there was a coupon stuck onto the package that stated,"Save 50 cents now!" When he went to the checkout,the cashier removed the coupon and gave him the 50 cent discount.Which type of coupon did Anthony receive? 

• A) on-pack coupon 
• B) in-pack coupon 
• C) online coupon 
• D) shelf-delivered coupon 
• E) instantly redeemable coupon

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Definitions:

Activity-Based Costing

This is a pricing technique which tags and assigns the expenses of each activity within a company to its various products and services, based on their specific consumption levels.

Overhead Cost

All ongoing business expenses not directly attributed to creating a product or service, including rent, utilities, and salaries of non-production employees.

Activity Cost Pools

Collections of all the costs associated with a particular business activity, facilitating more precise allocation of overheads.

Overhead Cost

Indirect expenses related to the production of goods or services, such as rent, utilities, and salaries of management, that cannot be directly tied to a specific product.