A Company Wants to Charge a Different Price for Students

question 93

Essay

A company wants to charge a different price for students than it charges for other customers.Another company wants to charge a price for its products that is 75% lower than its major competitors.Are these practices legal?

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Definitions:

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries for production managers.

Overapplied Overhead

An instance where the designated cost for manufacturing overhead surpasses the real overhead costs experienced.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries of managerial staff, excluding direct labor and materials.

Finished Goods

Goods that are finished being made but haven't been purchased or sent out to buyers yet.