Predatory Co

question 5

Multiple Choice

Predatory Co. ,a large company entering a new geographic market,decided to eliminate its smaller rivals in the new market by selling below cost in that market (but not elsewhere) until the rivals were forced out of business.This type of price discrimination is classified as:

• A)super-tertiary level discrimination.
• B)tertiary level discrimination.
• C)primary level discrimination.
• D)secondary level discrimination.

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Definitions:

Weighted-Average Method

An inventory costing method that determines the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Total Cost Accounted

The aggregate cost that has been recorded or reported for a certain product, project, or activity, including direct and indirect costs.

Conversion Costs

The costs necessary to convert raw materials into finished goods, including labor and overhead expenses.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory value based on the average cost of all goods available for sale during the period.