If Price Changes and Total Revenue Changes in the Opposite

question 318

True/False

If price changes and total revenue changes in the opposite direction, demand is relatively elastic.

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Definitions:

Equivalent Unit

A measure used in accounting to express the amount of work done by employees or the amount of goods produced in terms of fully completed units.

Process Costing

is a costing method used where production is continuous, assigning costs to units of product based on the processes they go through.

Conversion Costs

Costs related to transforming raw materials into finished goods, specifically including direct labor and manufacturing overhead expenses.

Equivalent Unit

A measure used in process costing that converts the work done on partial units into a number of fully completed units.