Refer to the Following Graph to Answer the Question

question 56

Multiple Choice

Refer to the following graph to answer the question: Suppose price rises from $90 to $110.Using representative arrows,the price effect is a relatively ________ (short,long) arrow pointing _______ (upward,downward) .

• A)short; upward
• B)short; downward
• C)long; upward
• D)long; downward

---

Definitions:

Adjusted Cost of Goods Sold

The cost of goods sold figure that has been adjusted for any changes in inventory levels, ensuring it reflects the cost of goods actually sold during the period.

Underapplied Manufacturing Overhead

An occurrence where the overhead expenses budgeted for manufacturing fall short of the overhead costs that were truly incurred.

Allocation

The process of assigning indirect costs to specific cost objects, such as products or departments.

Journal Entry

A record in accounting that logs a transaction and shows the affected accounts in debit and credit form.