Consider the Following Activities That Take Place in a Veterinary

question 221

Multiple Choice

Consider the following activities that take place in a veterinary clinic. (a) Cleaning cages.
(b) Heating and air conditioning the clinic.
(c) Sending blood work to a lab.
(d) Dispensing medicine.
Which of the following statements is true?

• A)Service entities cannot use ABC for overhead allocation.
• B)Cleaning cages is a facility level activity.
• C)Dispensing medicine is a facility level activity.
• D)Heating and air conditioning the clinic is a facility level activity.
• E)Sending blood work to a lab is a facility level activity.

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Definitions:

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A pricing strategy where goods are priced higher to evoke a sense of luxury or exclusivity.

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Competitive Parity Pricing is a pricing strategy where businesses set prices similar to their competitors, aiming to maintain market share rather than to differentiate based on price.

Price Elasticity

A measure of the sensitivity of quantity demanded or supplied to changes in price.