If a Particular Bank Regularly Announces Changes in Its Interest

question 133

Multiple Choice

If a particular bank regularly announces changes in its interest rate schedules before its competitors, who then set rates very close to those announced by that bank, this could be described as

• A) markup pricing.
• B) predatory pricing.
• C) price leadership.
• D) explicit price collusion.

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Definitions:

Manufacturing Overhead

All indirect costs related to the production process, such as maintenance, utilities, and quality control, not directly traceable to a product.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products, calculated before the production process begins based on estimated costs and activity levels.

Job-Order Costing

An accounting method used to assign costs to specific products or jobs, typically utilized in custom or specialized production.

Direct Labor-Hours

A measure of the labor directly involved in the manufacturing or production process, calculated in hours.