Which of the Following Is Correct

question 160

Multiple Choice

Which of the following is correct?

• A)If the demand for a product is inelastic, a change in price will cause total revenue to change in the opposite direction.
• B)If the demand for a product is inelastic, a change in price will cause total revenue to change in the same direction.
• C)If the demand for a product is inelastic, a change in price may cause total revenue to change in either the opposite or the same direction.
• D)The price elasticity coefficient applies to demand, but not to supply.

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Definitions:

Direct Labor Efficiency Variance

The difference between the actual hours worked and the standard hours expected, multiplied by the standard labor rate, indicating the efficiency of labor used in production.

Direct Labor Costs

Direct labor costs are the wages and benefits paid to employees who are directly involved in the production of goods or services, constituting part of the total manufacturing costs.

Total Direct Labor Cost Variance

The difference between the actual direct labor costs incurred and the standard or expected direct labor costs.

Direct Labor Costs

Direct labor costs are the total amounts paid to employees directly involved in production, such as wages for hours worked on manufacturing goods.