Peak Pricing Charges

question 61

Multiple Choice

Peak pricing charges:

• A)A higher price when demand is high and a lower price when demand is low.
• B)A lower price when demand is high and a higher price when demand is low.
• C)A low price when demand is high and a lower price when demand is low.
• D)A high price when demand is high and a higher price when demand is low.

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Definitions:

Insurance

A financial product sold by insurance companies to safeguard against the risk of financial losses, both big and small, that may result from damage to the insured or her property, or from liability for damage or injury caused to a third party.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the consumption of the asset's value over time.

Direct Materials Variances

The difference between the actual cost of direct materials used in production and the expected (standard) cost of those materials.

Fixed Overhead

Regular, unchanging costs incurred by a business, regardless of its level of production or sales, such as rent or salaries.