Resource X Is Necessary to the Production of Good Y

question 93

Multiple Choice

Resource X is necessary to the production of good Y.If the price of resource X falls,

• A) the supply curve of Y shifts leftward.
• B) the supply curve of Y shifts rightward.
• C) the supply curve of Y is unaffected.
• D) there is a movement down the supply curve of Y.
• E) there is a movement up the supply curve of Y.

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Definitions:

Work in Process Inventory

The value of unfinished goods in the production process at a specific point in time.

Direct Materials

Raw materials that can be directly traced to the production process of a product and are considered a part of the finished product.

Direct Labor

The cost of wages paid to workers directly involved in the production of goods or services.

Job Order Cost Sheets

Documents that record and track the costs associated with a specific job or order.