Figure 9.7 -Refer to Figure 9.7. Because of the Policy, Consumer Surplus

question 163

Multiple Choice

Figure 9.7
-Refer to Figure 9.7. Because of the policy, consumer surplus fell by

• A) $10.
• B) $20.
• C) $12,500.
• D) $25,000.
• E) $45,000.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and are a significant portion of the production cost.

Materials Equivalent Units

A measure used in process costing that represents the amount of materials put into production, adjusted for any unfinished work.

First-In, First-Out

An inventory valuation method where the goods first added to inventory are the first ones to be sold.

Finishing Department

The final stage in a manufacturing process where products undergo last touches, quality checks, and preparation for sale or distribution.