A Campus Auditorium Sells Tickets at Half Price to Students

question 14

Multiple Choice

A campus auditorium sells tickets at half price to students during the last 30 minutes before a concert starts. This is an example of:

• A) price discrimination.
• B) peak-load pricing.
• C) price discrimination or peak-load pricing.
• D) None of the statements is correct.

---

Definitions:

Unfavorable Variance

A situation where actual costs exceed budgeted or expected costs.

Efficiency Variance

The difference between the actual input used in production and the standard input that was expected to be used.

Spending Variance

The difference between the actual amount spent and the budgeted amount for a category or period, indicating over or underspending.

Quantity Variance

The difference between the actual quantity of materials or labor used in production and the expected (or standard) quantity.