The Amount of Markup Percentage Is Usually Higher If ________

question 112

Multiple Choice

The amount of markup percentage is usually higher if ________.

• A) there is idle capacity
• B) demand is strong
• C) competition is intense
• D) demand is elastic

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Definitions:

Activity Variance

The difference between planned activity costs and actual activity costs in managerial accounting, used for budget control and performance evaluation.

Fixed Cost

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance premiums.

Variable Cost

Expenditures that fluctuate with production output, including ingredients, packaging, and labor directly involved in production.

Vehicle Operating Cost

Expenses related to the operation of a vehicle, including fuel, maintenance, and repairs.