Which of the Following Types of Companies Use a Direct

question 176

Multiple Choice

Which of the following types of companies use a direct materials budget?

• A)Manufacturing
• B)Merchandising
• C)Service
• D)All of the above

---

Definitions:

Profit-maximizing

A strategy or point where a firm reaches its highest possible profit under given market conditions, taking into account costs and revenue.

Loss

A situation in which a business's expenses exceed its revenues over a specific period, resulting in negative profit.

Price Discrimination

A pricing strategy where a company charges different prices for the same product or service in different markets or to different segments of consumers, based on willingness to pay.

Product Differentiation

The method of differentiating a product or service from those available in the market to enhance its appeal to a specific target audience.