The More _____ a Product Is Defined, the More Substitutes

question 78

Multiple Choice

The more _____ a product is defined, the more substitutes are likely to be available, and the more price _____ it will be.

• A) narrowly; elastic
• B) narrowly; inelastic
• C) broadly; elastic
• D) broadly; unit elastic

---

Definitions:

Activity-Based Costing

A costing method that allocates overhead costs to specific products or activities based on their consumption of resources.

Estimated Overhead Cost

The projected cost of indirect production expenses for a specific period.

Expected Activity

The anticipated level of operations or production, often used for budgeting and planning.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities, providing detailed insights into the actual costs of processes, products, or services.