Many Internet Sites, Such as Autobytel

question 155

Multiple Choice

Many Internet sites, such as Autobytel.com and Edmunds.com, have extensive information about the prices of new and used vehicles that anyone can use for free. In light of the availability of this information, what is the responsibility of consumers to use it?

• A) Consumers shouldn't use it because it gives them an unfair advantage over car dealers.
• B) Consumers have a responsibility to use the information and be smarter customers.
• C) Consumers can use it, but should not feel a responsibility to do so.
• D) Consumers should not trust any information they receive from any source except the government.
• E) None of these alternatives is correct.

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Definitions:

Budgeted Amount

The estimated financial expenditure or revenue for a specific period, often used as a plan or guideline for managing finances.

Overhead Volume Variance

The difference between the budgeted overhead costs and the actual costs incurred, due to changes in the level of production or activity.

Fixed Overhead

Fixed Overhead refers to the indirect costs of production that do not vary with the volume of production, such as salaries of managers, rent of factory, and depreciation of equipment.

Standard Cost System

A system of accounting that uses predetermined costs for calculating variances and tracking operational performance.