Understanding Costs" Please respond to the following:

• Compare incremental costs and avoidable costs. Incorporate the impact each has on prices in your response. Provide specific examples to support your comparison.
• Evaluate the best way for a small business (e.g., a dry cleaner, local café, housekeeping services) to handle a noticeable cost increase from a supplier, such as higher delivery costs due to an increase in fuel.

Week 7 Discussion 2COLLAPSE

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"Applying Costs" Please respond to the following:

• Determine the industries you believe most frequently use activity-based costing and explain why.
• Analyze the "Peak Pricing: An Application of Incremental Costing" from Chapter 9 example and compare this example of peak and off-peak pricing to a local electricity provider and its pricing strategy. In your comparison, argue whether your local company is more or less profitable when implementing the type of pricing strategy it is using.