Raw Materials That Become Part of a Product and Are

question 221

True/False

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

---

Definitions:

Elastic Demand

A situation where the quantity demanded of a good or service significantly changes in response to a change in price.

Total Revenue

The total amount of money generated by the sale of goods or services, calculated as the unit price multiplied by the quantity sold.

Delicatessen

A store or section of a grocery store selling cured meats, cheese, and other specialty food items.

Inelastic Demand

A situation where the demand for a product does not change significantly with a change in its price.