The Manager of a Company Notices That the Company's Total

question 22

Multiple Choice

The manager of a company notices that the company's total revenue would increase if the manager raises the price of the company's product. Accordingly, the manager can assert that the demand for the company's product is:

• A) elastic.
• B) inelastic.
• C) unit elastic.
• D) zero elastic.

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Definitions:

Unfavorable

A term used to describe variances or differences that negatively impact profitability or efficiency, often indicating higher costs or lower revenue than expected.

Favorable

A term used in accounting and finance to describe situations where actual costs are less than budgeted or expected costs, or revenue is higher than anticipated.

Manufacturing Overhead Volume Variance

The difference between the budgeted volume of manufacturing overhead and the actual volume incurred, used for budgeting and cost control.

Overapplied

A situation in cost accounting where the allocated manufacturing overhead costs exceed the actual overhead expenses incurred.