The Activity Driver for the Shipping Activity Is the Number

question 30

Multiple Choice

The activity driver for the shipping activity is the number of orders shipped. Product X uses 40 orders, and Product Y uses 120 orders. What is the consumption ratio for product X?

• A) 0.215
• B) 0.250
• C) 0.300
• D) 0.625

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Definitions:

Consumer Willingness

The degree to which consumers are prepared to buy certain products or subscribe to services, influenced by factors such as price and quality.

Derived Demand

Demand for a good or service that arises from the demand for another good or service.

Concert Staging Co.

Concert Staging Co. would imply a company that specializes in providing the physical setup, including stages, lighting, and sound equipment, for concert performances.

Ostrich Leathers

High-quality and durable leather made from the skin of ostriches, used in luxury fashion products.