The Difference Between the Lowest Price a Firm Would Have

question 32

Multiple Choice

The difference between the lowest price a firm would have been willing to accept and the price it actually receives from the sale of a product is called

• A)producer surplus.
• B)profit.
• C)marginal revenue.
• D)price differential.

---

Definitions:

Clerical Activity

Routine office tasks and procedures such as filing, typing, and scheduling, which support the administrative functions of an organization.

Purchase Orders

Written authorization for a supplier to deliver a specified quantity of goods at a stated price.

Batch-Level Activity

Batch-level activity pertains to the costs and operations associated with processing groups of units or products together rather than individually.

Activity-Based Costing

A costing methodology that assigns overhead and indirect costs to specific activities, providing more accurate product costing.