All of the Following Are Tactics for Fine-Tuning the Base

question 32

Multiple Choice

All of the following are tactics for fine-tuning the base price EXCEPT:

• A) functional discounts
• B) markdown money
• C) rebates
• D) quality discounts
• E) quantity discounts

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Definitions:

Direct Labor

The wages and related benefits of employees who are directly involved in the production of goods or services.

Materials Requisition

The process of requesting and withdrawing materials from inventory for use in the production process or for other operational needs.

Source Document

An original record, such as an invoice or receipt, that evidences a business transaction.

Indirect Materials

Indirect materials are those materials used in the production process but are not directly traceable to specific products, such as lubricants for machinery.