A Change in Which of the Following Variables Will Result

question 54

Multiple Choice

A change in which of the following variables will result in NO change in the demand for a given commodity?

• A)average household income
• B)the distribution of income
• C)population
• D)tastes in favour of the commodity
• E)the price of the commodity

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Definitions:

Standard Cost

A predetermined cost of manufacturing, servicing, or marketing an item, which is often used for budgeting and performance evaluation.

Income Statement

A financial statement showing a company's revenue and expenses, indicating the net profit or loss over a specific period.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as salaries of managers and depreciation of equipment.

Direct Labor

The cost associated with employees who directly contribute to the manufacturing or production of goods, redefined as the labor directly tied to the creation of a product.