If the Cross-Price Elasticity of Demand of Two Goods Is

question 207

Multiple Choice

If the cross-price elasticity of demand of two goods is positive, we can conclude that the two goods are:

• A) normal goods.
• B) inferior goods.
• C) substitutes.
• D) complements.

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Definitions:

Cost Object

Anything for which cost data are desired. Examples of cost objects are products, customers, geographic regions, and parts of the organization such as departments or divisions.

Indirect Cost

Costs that are not directly traceable to a specific product, project, or activity, such as utilities, rent, and administrative expenses.

Direct Cost

A cost that can be easily and conveniently traced to a specified cost object.

Prime Cost

Direct materials cost plus direct labor cost.