The Type of Product Costing System Used by a Company

question 80

Multiple Choice

The type of product costing system used by a company is dictated by the

• A)cost flow assumptions made by the company.
• B)production process of the product.
• C)inventory system used by the company.
• D)selling price of the product.

---

Definitions:

Price Elasticity

A measure in economics of how the quantity demanded of a good or service changes in response to a change in its price.

Quantity Supplied

The amount of goods or services that producers are willing and able to sell at a specific price.

Inferior Good

A type of product for which demand decreases as the income of the consumer increases.

Cross Elasticity

Cross elasticity of demand measures the responsiveness of the demand for a good to a change in the price of another good, identifying substitute or complementary relationships.