Other Things Equal,the Relationship Between the Relative Importance of a Given

question 119

Multiple Choice

Other things equal,the relationship between the relative importance of a given type of labor in a firm's total costs and the elasticity of demand for that labor is such that the:

• A) demand for labor will be elastic only if labor accounts for less than 50 percent of total costs.
• B) demand for labor will be elastic only if labor accounts for 50 percent or more of total costs.
• C) larger the labor cost-total cost ratio,the smaller will be the elasticity of labor demand.
• D) larger the labor cost-total cost ratio,the greater will be the elasticity of labor demand.

---

Definitions:

Transferee

An individual or entity that receives the transfer of assets, rights, or interests from another party.

Transferor

The entity or person that transfers assets, obligations, or rights to another party.

Allowance Method

An accounting technique that estimates and deducts accounts receivable that are not expected to be collected to better represent net realizable values.

Uncollectible Accounts

Accounts receivable that are deemed to be uncollectible, leading to their removal from the accounts through a write-off process.