When the Demand for a Product Is Less Elastic Than

question 207

Multiple Choice

When the demand for a product is less elastic than the supply,

• A)consumers pay the majority of the tax on the product.
• B)firms pay the majority of the tax on the product.
• C)firms pay the entire tax on the product.
• D)consumers pay the entire tax on the product.

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Definitions:

Process Cost System

This accounting method is used for homogenous products and services to assign production costs evenly across all units produced, facilitating per unit cost analysis.

Job Order Cost System

An accounting system used to assign costs to individual jobs or batches, tracking the expenses associated with specific customer orders or projects.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on the activities they use.

Not A Product Cost

Indicates an expense not directly tied to the creation of products, such as administrative or sales expenses.