Which Term Refers to Giving Some Customers Promotional Allowances and Support

question 66

Multiple Choice

Which term refers to giving some customers promotional allowances and support while not making other customers aware of such opportunities?

• A) Customer discrimination
• B) Selective discounting
• C) Price discrimination
• D) Exclusive dealing
• E) Functional discounting

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Definitions:

Conversion

In accounting, it refers to the process of changing raw materials into finished products, including the costs associated with such a transformation.

Weighted-Average Method

An inventory costing method that calculates the cost of units for sale during a period by averaging the costs of all similar goods available.

Equivalent Units

A concept used in cost accounting to standardize the amounts of work done on incomplete units, to fully completed units, thereby enabling a consistent cost analysis.

Overhead Allocation

The process of assigning indirect costs of production, such as utilities and rent, to specific cost objects like products or departments.