Prices are generally more inelastic in the early stages of the product life cycle and increasingly elastic in the later stages of the product life cycle.
Answer the following statement true (T) or false (F)
False
Elastic demand is a scenario in which demand changes significantly due to a small change in price. Prices are generally more elastic in the early stages of the product life cycle and increasingly inelastic in the later stages of the product life cycle.
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Which of the following risks is related to efficiency of testing?
A. The risk of incorrect acceptance. B. Inherent risk. C. The risk of incorrect rejection. D. None of these.
Cement Company, Inc. began the first quarter with 1,000 units of inventory costing $25 per unit. During the first quarter, 3,000 units were purchased at a cost of $40 per unit, and sales of 3,400 units at $65 per units were made. During the second quarter, the company expects to replace the units of beginning inventory sold at a cost of $45 per unit. Cement Company uses the LIFO method to account for inventory.The amount of gross profit for the first quarter is:
A. $250,000 B. $90,000 C. $221,000 D. $83,000 E. $87,000
Smith Corporation has a $6,000 favorable flexible budget variance for January. Which of the following statements is true, if January's flexible budget net operating income was $100,000?
A) Smith's static budget must have showed a net operating income of $106,000. B) Smith's static budget must have showed a net operating income of $94,000. C) Smith's actual net operating income must have been $106,000. D) Smith's actual net operating income must have been $94,000.
In the context of business product categories, accessory equipment is designed for a shorter productive life than _____.
A. raw materials B. maintenance products C. repair and operating products D. installations