In the Service Sector ________

question 40

Multiple Choice

In the service sector ________.

• A) direct labor costs are always easy to trace to jobs
• B) a budgeted direct-labor cost rate may be used to apply direct labor to jobs
• C) normal costing may not be used
• D) overhead is generally applied using an actual cost-allocation rate

Grasp the factors that affect price elasticity of demand, such as the availability of substitutes and whether a good is a luxury or a necessity.

Analyze the impact of price changes on demand elasticity using the midpoint method.

Apply concepts of elasticity to real-world scenarios involving commodities and services.

Understand the relationship between demand elasticity and total revenue.