The Recent Rise in Oil Price Most Likely Will Not

question 68

Multiple Choice

The recent rise in oil price most likely will not cause recession in Canada, because

• A) Canadian economy has shifted away from energy-intensive industries into knowledge-based industries.
• B) in response to the earlier oil price shocks, Canadian firms have become significantly more energy efficient.
• C) Canada, as a producer of oil, may benefit from the oil price shock.
• D) all of the above.

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Definitions:

Low-Volume Products

Products that are manufactured in small quantities, often leading to higher per-unit production costs.

Batch Setup

The process of preparing equipment and configurations needed to start a production batch, often associated with setup costs.

Activity Rate

The cost driver rate used in activity-based costing to assign overhead costs to products or services.

Activity Cost Pools

A method in cost accounting where costs are accumulated according to activities performed, for allocating overhead costs more accurately to products or services.