If the Board of Regents of a Major State University

question 174

Multiple Choice

If the board of regents of a major state university system plans to raise tuition in order to increase revenues, the regents must believe student demand is

• A) elastic.
• B) inelastic.
• C) of unitary elasticity.
• D) perfectly elastic.

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Definitions:

Prime Costs

The combined costs of direct labor and direct materials involved in the production of goods.

Factory Overhead

includes all the indirect costs associated with manufacturing, such as utilities, maintenance, and salaries of indirect labor.

Direct Labor

The labor costs directly associated with the manufacturing of a product, including wages of workers physically involved in production.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.