Question

Charging a higher price for a motel room to customers with dogs or cats than to customers with no pets is most likely an example of:________. A. actual cost differences. B. seconddegree price discrimination. C. firstdegree price discrimination. D. thirddegree price discrimination.

Answer 1

A)Actual cost differences

Step-by-step explanation:

Actual cost in domain of finance can be explained as the actual cost that are needed to make a unit of product in an organization that are producing. It could be the actual cost of direct labor

overhead as well as direct materials.

The difference that exist in between actual cost and standard cost in a business can be regarded as variance, whenever standard cost is low compare to actual cost then variance become unfavorable.It should be noted that an example of Actual cost differences is

Charging a higher price for a motel room to customers with dogs or cats than to customers with no pets