Which of the Following Products Allows the Seller to Identify

question 110

Multiple Choice

Which of the following products allows the seller to identify different groups of consumers (segment the market) and practice price discrimination?

• A)clothing items sold through Macy's Department Store
• B)a hamburger sold at Burger King
• C)a cafe latte sold at Starbucks
• D)tickets to matinee shows at a movie theatre

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Definitions:

Overhead Cost

Expenses related to the ongoing operation of a business that are not directly tied to producing goods or services, such as rent, utilities, and administrative salaries.

Activity Rates

Costs assigned to cost objects based on their use of activities, commonly used in activity-based costing.

Cost Pools

Aggregations of individual costs, often by department or service center, from which cost allocations are made.

Activity-Based Costing

An accounting method that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.