Which of the Following Items Would Not Affect the Cost

question 112

Multiple Choice

Which of the following items would not affect the cost of merchandise inventory acquired during the period?

• A) quantity discounts
• B) sales discounts
• C) freight in
• D) sales commissions

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Definitions:

Total Revenue

The total income that a company receives from its normal business activities, usually from the sale of goods and services to customers.

Inelastic Demand

A situation where the quantity demanded of a good or service changes little when its price changes.

Elastic Demand

A situation where the demand for a good or service significantly changes in response to changes in price.

Income Elastic

Describes a good or service for which demand changes significantly when consumer incomes change, indicating a strong connection between income level and purchasing behavior.