Figure: Four Panel 2 
Which of the four panels shows an increase in income on an inferior good?
Definitions:
Activity Rates
Costs assigned to cost objects based on their use of activities, commonly used in activity-based costing.
Cost Pools
Aggregations of individual costs, often by department or service center, from which cost allocations are made.
Activity-Based Costing
An accounting method that identifies the activities in an organization and assigns the cost of each activity to all products and services according to the actual consumption by each.
Activity-Based Costing
A pricing strategy that pinpoints various tasks within a company and allocates the expense of each task across all goods and services based on their real usage.
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