When Two or More Divisions Mark Up Prices in Excess

question 99

Multiple Choice

When two or more divisions mark up prices in excess of marginal cost,

• A)double marginalization occurs.
• B)two-part pricing occurs.
• C)second-degree price discrimination occurs.
• D)none of the statements associated with this question are correct.

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Definitions:

Physical Custody

The actual possession or direct control of tangible assets, documents, or securities.

Asset Records

Documentation that details the acquisition, valuation, and disposal of assets owned by an individual or organization.

External Auditors

Independent professionals outside of the organization who examine the company's financial statements to ensure accuracy and compliance with accounting standards.