A Measure of Frequency and Intensity of Demands Placed on Activities

question 27

Multiple Choice

A measure of frequency and intensity of demands placed on activities by cost objects is:

• A)Quantity driver.
• B)Resource consumption cost driver.
• C)Not a cost driver.
• D)Activity consumption cost driver.
• E)Consumption cost driver.

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Definitions:

Wage Increase

An upsurge in the rate of pay employees receive for their labor, typically expressed as a percentage increase over current wages.

Substitution Effect

The change in consumption patterns due to a price change, leading consumers to substitute one product for another.

Wage Decrease

A reduction in the hourly, daily, or monthly compensation that workers receive for their labor.

Utility Maximizing

The principle or practice of choosing the combination of goods and services that provides the highest level of satisfaction or utility to an individual.