-Refer to Table 5-2

question 16

Multiple Choice

-Refer to Table 5-2. Using the midpoint method, if the price falls from $100 to $50, the absolute value of the price elasticity of demand is

• A)0.31.
• B)0.46.
• C)1.25.
• D)2.17

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Definitions:

Weighted-Average Method

An inventory costing method that assigns a weighted average cost to each unit in inventory, calculated after each inventory purchase.

Equivalent Units

A concept in cost accounting used to allocate costs to partially completed goods, expressed in terms of fully completed units.

Equivalent Units

A concept used in cost accounting to denote the amount of completed units that could have been produced given the total amount of direct materials and labor consumed.