If a Product's Price Increases, Then Its

question 6

Multiple Choice

If a product's price increases, then its:

• A) MP will increase.
• B) MFC will increase.
• C) MRP will increase.
• D) MP will decrease.

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Definitions:

Relevant Activity Base

A factor that directly influences the costs incurred during a business activity, used for allocating costs in activity-based costing.

Decision-making Needs

The requirement for relevant, timely, and accurate information to make informed choices in business operations and strategies.

Variable Costs

Expenses that fluctuate in proportion to activity levels within a business.

Per-unit Basis

A calculation or measurement that is made for each individual unit.