What Is the Overhead Cost Assigned to Product C4 Under

question 25

Multiple Choice

What is the overhead cost assigned to Product C4 under activity-based costing?

• A)$6,542
• B)$5,292
• C)$1,250
• D)$10,500

---

Definitions:

Income Elasticity

A measure of how much the demand for a product changes with a change in consumers' income.

Completely Inelastic

A situation in which the demand or supply for a good or service is totally unresponsive to price changes.

Inelastic

Describes a condition where the demand or supply for a good or service is not significantly changed by changes in price.

Elastic

Elasticity in economics refers to the responsiveness of demand or supply to changes in price or income.