Which of the Following Statements About a Flexible-Price Policy Is

question 61

Multiple Choice

Which of the following statements about a flexible-price policy is True?

• A) Flexible pricing means offering the same price to all customers who purchase under essentially the same conditions and in the same quantities.
• B) The availability of computer pricing databases has had no effect on the popularity of flexible-price policies.
• C) Flexible pricing often involves price negotiation between the buyer and seller.
• D) Flexible pricing does not cause channel conflict.
• E) None of these statements about a flexible-price policy is true.

---

Definitions:

Factory Payroll

The total compensation, including wages, salaries, and benefits, paid to employees working within a manufacturing facility.

Direct Labor

Refers to the wages and benefits given to employees who are directly involved in the production of goods or services.

Overapplied Overhead

A situation where the allocated overhead cost to products or services exceeds the actual overhead costs incurred.

Underapplied Overhead

A situation where the allocated manufacturing overhead cost is less than the actual overhead incurred.