Which of the Following Is Not a Factor in Determining

question 77

Multiple Choice

Which of the following is not a factor in determining the price elasticity of demand?

• A) the number of available substitutes
• B) the time period involved
• C) the proportion of the budget spent on the item
• D) the slope of the supply curve

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Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process, often used to allocate manufacturing overhead.

Activity-Based Costing

A costing method that allocates overhead costs to products based on the activities required to produce them.

Manufacturing Overhead

includes all the indirect costs associated with the production process, such as utilities, maintenance, and factory equipment depreciation, which are not directly traceable to a specific product.

Traditional Costing System

A costing methodology that assigns manufacturing costs to products based on volume metrics such as direct labor hours or machine hours.