The Utility of a Good Is Determined by How Much

question 57

Multiple Choice

The utility of a good is determined by how much _____ a particular consumer obtains from it.

• A)satisfaction
• B)usefulness
• C)cost
• D)need fulfillment

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Definitions:

Cost Behavior

The way in which a cost changes in relation to changes in activity levels, categorized into fixed, variable, and mixed costs.

Margin Of Safety

A figure that indicates the possible decrease in sales that may occur before an operating loss results; may be expressed in terms of sales dollars, sales units, or percent of current sales.

Unit Selling Price

The price at which a single unit of a product or service is sold, not accounting for discounts or modifications.

Sales

The revenue generated from the sale of goods or services by a company during a particular period.