Figure 5-11 -Refer to Figure 5-11.An Increase in Price from $30 to from $30

question 161

Multiple Choice

Figure 5-11
-Refer to Figure 5-11.An increase in price from $30 to $35 would

• A) increase total revenue by $250
• B) decrease total revenue by $250.
• C) increase total revenue by $500.
• D) decrease total revenue by $500.

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Definitions:

Activity Rates

Ratios used to allocate costs to products or services based on the amount of activity consumed by each.

Activity-Based Costing

A pricing technique that allocates expenses to goods or services according to the tasks and materials involved in their creation.

Activity Cost Pools

A costing method that groups all the costs associated with a specific activity, allowing more accurate allocation of costs to products or services.

Activity Cost Pools

Aggregations of all the overhead costs associated with specific activities, used in activity-based costing.