Which of the Following Is Not an Example of the Differential

question 2

Multiple Choice

Which of the following is not an example of the differential pricing policy?

• A) Weekend and night rates for long-distance telephone calls.
• B) Difference in hospital fees for walk-in and scheduled services.
• C) Peak-load pricing by utility companies.
• D) None of the above.

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Definitions:

FIFO

First In, First Out; an inventory valuation method where the oldest inventory items are recorded as sold first.

Periodic inventory system

An inventory accounting system where updates to inventory levels are made periodically, usually at the end of an accounting period, rather than after each transaction.

Ending inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting cost of goods sold.

Perpetual inventory method

An accounting method where inventory levels are updated in real-time with each sale and purchase, providing a continuous record of inventory balances.