If Demand and Supply Both Decrease

question 53

Multiple Choice

If demand and supply both decrease:

• A) both price and quantity will be less.
• B) both price and quantity will go up.
• C) price will fall but quantity will go up.
• D) quantity will go down but the effect on price is indeterminate.

Understand the essential elements and purposes of management accounting information.

Recognize the ethical standards required in management accounting, including confidentiality, competence, integrity, and objectivity.

Identify the role of management accountants in planning, control, and decision-making within organizations.

Distinguish between management accounting and financial accounting.

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Definitions:

Variable Overhead Efficiency Variance

A measure used to evaluate the efficiency of variable overhead resources used in production relative to the standard consumption expected.

Particular Product

A specific good or service offered by a company, distinct from other offerings within its product line.

Labor Efficiency Variance

measures the difference between the actual hours worked to produce goods and the standard hours expected, multiplied by the standard labor rate.

Direct Labor-Hours

The hours worked by employees directly involved in the production process.