"Unfair Trade Practice Acts

question 174

Multiple Choice

"Unfair trade practice acts":

• A) require different types of retailers to charge different retail prices.
• B) make price fixing illegal.
• C) eliminate price competition on manufacturers' brands.
• D) prohibit intermediaries from taking excessive markups.
• E) put a lower limit on prices, especially at the wholesale and retail levels.

Analyze performance using the balanced scorecard.

Calculate departmental income and gross profit for divisions.

Understand the concept of residual income and how it is calculated for divisions.

Comprehend the principles behind transfer pricing and how it affects divisional sales and purchases.

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Definitions:

Sales Revenue

The sum of money earned from the sales of goods or services that are fundamental to a company's main business activities.

Interest Charged

The cost incurred for borrowing money, calculated as a percentage of the total amount loaned.

Taxing Agency

An agency of the government responsible for the assessment and collection of taxes.

Unearned Insurance Revenue

Income received by an insurance company for policies that have been paid in advance but the service has not yet been provided or earned.