When a Product Has ________ Demand, an Increase or Decrease

question 146

Multiple Choice

When a product has ________ demand, an increase or decrease in the price of the product has little or no effect on the demand for the product.

• A) elastic
• B) joint
• C) derived
• D) inelastic
• E) fixed

Distinguish between the various sections of an end-of-period spreadsheet and their purpose.

Interpret the impact of net income or net loss on financial statements from an end-of-period spreadsheet.

Describe and prepare a classified balance sheet.

Understand and execute closing entries in the accounting cycle.

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Definitions:

Sunk Costs

Costs that have already been incurred and cannot be recovered.

Avoidable Costs

Expenses that can be eliminated if a particular decision is made or if a particular activity is discontinued.

Irrelevant Costs

Costs that should not influence decision-making because they will not change regardless of the outcome.

Sunk Costs

Past expenditures that have already been incurred and cannot be recovered or altered by current or future actions.