The Practice of Charging Different Customers Different Prices for the Same

question 42

Multiple Choice

The practice of charging different customers different prices for the same product or service is:

• A)job costing.
• B)product costing.
• C)price discrimination.
• D)product life-cycle.
• E)customer life-cycle.

Apply overhead costs to products under both traditional and activity-based costing systems.

Understand the financial implications of using capacity as a basis for predetermined overhead rate calculation.

Understand the concept of predetermined overhead rate based on activity at capacity.

Calculate the amount of manufacturing overhead charged to a specific job when a predetermined overhead rate is used.

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Definitions:

Concrete Operational

Refers to a stage in Piaget's theory of cognitive development where children aged 7 to 12 start thinking logically about concrete events, but struggle with abstract concepts.

Permissive Parenting

Permissive parenting is a style characterized by low demands with high responsiveness, where parents are lenient and often only step in when there is a serious problem.

Authoritarian

A leadership or parenting style characterized by high demands and low responsiveness, where obedience is emphasized.

Involved

Engaged or actively participating in an activity or situation, implying a deep level of interest or commitment.