LESSON OBJECTIVE
Assessment Criteria AC 1.4 Analyse cost data using appropriate techniques Below are questions pertaining to lesson 4. Please ensure to answer each question correctly. 1. What is meant by elasticity of demand? How does knowledge of the elasticity of demand affect pricing decisions? 2. What is meant by the BEP (break-even point) for an activity? How is the BEP calculated? Why is it useful to know the BEP? 3. A business that provides a service, expects to incur overheads totaling £20,000 next month. The total direct labour time worked is expected to be 1,600 hours
Christopher Cameron
10/9/2016 03:29:51 pm
1) (I) Elasticity of demand is when there is a large change in demand due to a change in price (Hofstrand 2007).
Dalene cushnie
10/9/2016 05:36:39 pm
1,Demand elasticity refers to how sensitive the demand for a good is to changes in other economic variables, such as the prices and consumer income. This affects pricing demands in such a way that when more sales are available is when price is low and less when price increases.
Dalene cushnie
10/9/2016 06:26:06 pm
3, labour hours (A) 10,000 for each job and (B) machine hours 14,000 for the first job and 6,000 for the second job. Both machine and labour has the same amount of money when calculated. So if I checked correctly the company will be getting more then expected to be exact 40,000.
Taisha Lewis
10/12/2016 10:39:12 pm
1. This is the point to which demand for a goods or services differs with its price. Sales rise with a drop in prices and drop with growth in prices. An understanding of demand elasticity leads businesses toward more ideal competitive performance and allows them to make more detailed forecasts of their production needs. Whenever the demand elasticity for a particular economic variable is higher it is saying that consumers are more receptive to changes in this variable, such as price or income. Comments are closed.
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