Costs That a Manager Can Influence in the Short Term

question 50

Multiple Choice

Costs that a manager can influence in the short term are called:

• A) direct costs.
• B) traceable costs.
• C) controllable costs.
• D) departmental costs.

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Definitions:

Total Revenue

The total income a company receives from selling its products or services before any expenses are subtracted.

Income Elasticity

A measure of how much the demand for a good or service changes with a change in the consumer's income.

Negative Elasticity

It refers to a situation in which demand for a product decreases when its price decreases, or vice versa, going against the typical demand pattern.

High Income Elasticity

A situation where the demand for a good or service is significantly affected by changes in consumer income levels.