If Physical Observation Cannot Be Used to Identify the Exact

question 38

Multiple Choice

If physical observation cannot be used to identify the exact amount of resources consumed by a cost object,what is the next best approach?

• A)driver tracing
• B)allocation
• C)estimation
• D)direct costing

---

Definitions:

Price Maker

A firm or entity that has the power to influence the price of goods or services in the market due to a lack of significant competition.

Total Revenue

The overall amount of money generated by a business from selling its goods or services before any costs are subtracted.

Elastic Than Industry

A condition or scenario where a particular firm or product has a higher sensitivity to price changes compared to the overall industry.

Monopolist

A single seller in a market, possessing significant market power, and facing little to no competition in offering a unique product or service.