Which If the Following Is the Best Example of Derived

question 179

Multiple Choice

Which if the following is the best example of derived demand?

• A) Janice got a Samsung Galaxy Tab for her birthday, and now her best friend Tamika wants one for her birthday.
• B) The demand for movie theater ushers increases when more consumers choose to go to movie theaters.
• C) More peanut butter is demanded as the price of strawberry jam falls.
• D) When the price of Honda Accords increased, the demand for Nissan Altimas went up.

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Definitions:

Machine-Hours

A measure of the amount of time machines are used in the production process, often used as a basis for allocating overhead costs.

Overhead Applied

The portion of overhead costs allocated to a specific job or project based on a predetermined rate.

Machining Department

A segment of a manufacturing facility where machining processes such as cutting, drilling, or shaping materials are performed.

Machine-Hours

A measure of production time referring to the total hours that machinery is in use during the manufacturing process.