Other Things the Same,if the Price Level Rises by 2

question 67

Multiple Choice

Other things the same,if the price level rises by 2% and people were expecting it to rise by 5%,then some firms have

• A)higher than desired prices,which increases their sales.
• B)higher than desired prices,which depresses their sales.
• C)lower than desired prices,which increases their sales.
• D)lower than desired prices,which depresses their sales.

Calculate and compare unit product costs under traditional and activity-based costing.

Allocate materials handling costs based on different bases (e.g., direct labor-hours, material moves).

Derive activity rates for cost pools in an ABC system.

Apply overhead based on direct labor-hours using traditional costing methods.

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Definitions:

Antitrust Cases

Legal disputes focused on stopping or managing businesses that violate competition laws designed to promote market fairness and prevent monopolies.

Herfindahl Index

A measure of market concentration and competition, calculated as the sum of the squares of the market shares of all firms within an industry.

Clayton Act

A U.S. antitrust law enacted in 1914 aimed at promoting fair competition and preventing monopolies.

Herfindahl Index

A measure of the size of firms in relation to the industry and an indicator of the amount of competition among them.