Use the Following to Answer Question 192 -Which Strategy Is NOT an Example of Price Discrimination?
A)

question 131

Multiple Choice

Use the following to answer question 192: $$\begin{array}{l}\text { Table: Prices and Demand }\\\begin{array} { l c } \hline \begin{array} { l } \text { Quantity } \\\text { of Hats } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Price } \\\text { per Hat }\end{array} \\\hline 0 & \$ 30 \\1 & 28 \\2 & 26 \\3 & 24 \\4 & 22 \\5 & 20 \\6 & 18 \\7 & 16 \\8 & 14 \\\hline\end{array}\end{array}$$
-Which strategy is NOT an example of price discrimination?

• A) a Fourth of July sale
• B) a coupon in the newspaper offering a 10% discount on a product
• C) a higher price for front row seats at a concert than for seats at the back
• D) a lower price charged to the grandfather who bought his airline ticket to Chicago Calgary three weeks in advance and will stay over a Saturday night than to the businesswoman who bought her ticket the day of the flight and will not stay over Saturday night

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Definitions:

Cost Reconciliation

The process of analyzing and adjusting the differences between the reported cost and the actual cost.

Direct Method

An approach in cost accounting used to allocate service departments' costs directly to production departments without intermediate steps.

Service Department

An organizational unit that provides support services to other parts of an organization, rather than directly contributing to revenue generation.

Pediatrics Department

A specialized medical department dedicated to the care, diagnosis, and treatment of infants, children, and adolescents.