When Price Was 5,quantity Demanded Was 10

question 81

Multiple Choice

When price was 5,quantity demanded was 10.When price increased to 6,quantity demanded decreased to 9.Therefore,when price increased,total revenue

• A) decreased from 54 to 50, indicating that demand is inelastic.
• B) decreased from 54 to 50, indicating that demand is elastic.
• C) increased from 50 to 54, indicating that demand is inelastic.
• D) increased from 50 to 54, indicating that demand is elastic.

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Definitions:

Fixed Manufacturing Overhead

Costs that do not change with the level of production, including salaries, rent, and insurance.

Labor Efficiency Variance

A discrepancy between the actual working hours and the expected standard hours, multiplied by the predetermined salary rate.

Direct Labor Standards

Direct labor standards are predetermined measures for the amount of labor time and cost that should be associated with producing a unit of product or performing a service.

Standard Cost Variances

The differences between the actual costs and the standard costs for manufacturing or service processes, used to control and manage expenses.