If Consumers but Not Producers Expect That the Price of Soda

question 372

Multiple Choice

If consumers but not producers expect that the price of soda will rise in November, the

• A) demand for soda in October will increase.
• B) demand for soda in October will decrease.
• C) supply of soda in October will decrease.
• D) supply of soda in October will increase.

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Definitions:

FOH Volume Variance

The difference between the budgeted fixed overhead and the applied fixed overhead, which is attributed to the difference in actual and budgeted activity levels.

FOH Budget Variance

The difference between the actual and budgeted factory overhead costs over a certain period, indicating under or overspending.

Work in Process

Inventory that includes materials that have begun the production process but are not yet completed products.

Retained Earnings

The accumulated net income of a company that is retained by the company rather than distributed to shareholders as dividends.