Which of the Following Correctly Comments on the Following Statement

question 67

Multiple Choice

Which of the following correctly comments on the following statement? "The only way to increase the revenue from selling a product is to increase the product's price."

• A)It is not true. Revenue will increase as the price of the product increases only if demand is elastic.
• B)This statement is not true. Revenue will increase as the price of the product increases only if demand is inelastic.
• C)The statement is true.
• D)This statement is not true. Revenue will decrease as the price of the product increases because quantity demanded will fall.

Distinguish between different types of transactions and their appropriate journal entries.

Grasp the concept of internal controls and their significance in accounting system design.

Appreciate the dynamic nature of accounting systems and their evolution in response to business needs.

Understand the basic concepts related to bonds and their interest rates.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs, excluding fixed overhead from inventory valuation.

Fixed Overhead

Recurring operating expenses that remain relatively constant regardless of the level of production or business activity.

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.

Inventory

Products and items that a company keeps with the final intention of selling or further processing.