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NEW QUESTION 22
Which of the following costs would be incurred in an inventory stockout?

Answer: C

NEW QUESTION 23
Which of the following price adjustment strategies is designed to smooth production for the selling firm?

Answer: A

Explanation:
Seasonal discounts are designed to smooth production by the selling firm. For example, a ski manufacturer offers seasonal discounts to retailers in the spring and summer to encourage early ordering.

NEW QUESTION 24
In which product-mix pricing strategy is it appropriate for the seller to accept any price that exceeds the storage and delivery costs for the product?

Answer: B

Explanation:
A by-product is a product of relatively minor importance generated during the production of one or more other products. Its production entails no additional costs. Any amount received above the storage and delivery costs for a by-product allows the seller to reduce the main product's price to make it more competitive.

NEW QUESTION 25
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