Amtrak Prices Its Tickets So That It Is Less Expensive

question 158

Multiple Choice

Amtrak prices its tickets so that it is less expensive to travel on weekends than during the week when there is heavy business travel.This illustrates ____ pricing.

• A) cost-plus
• B) demand-based
• C) competitive
• D) secondary markup
• E) seasonal

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Definitions:

Volume Variance

Refers to the difference between the expected volume of production and the actual volume, affecting the budgeted production costs.

Standard Hours

The amount of time expected to complete a task or a project under normal conditions.

Budget Variance

The difference between what was budgeted or planned for an operation and what actually occurred.

Fixed Manufacturing Overhead

Indirect manufacturing costs that remain relatively constant regardless of the level of production, including salaries of managers and depreciation of factory equipment.