Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 11

What is price discrimination? How could a cost accountant help determine if differences in prices were evidence of price discrimination?

Step 1 of 2

Price discrimination:

Price is the amount, paid to the seller by the buyer to get the ownership or limited rights of the goods or service.

Price discrimination is a strategy when different individual consumers or groups are charged different price for exactly same good.

For e.g. an amusement park giving discounts to students and senior citizens.