There Is a Technological Advance in the Production of Ice

question 454

Multiple Choice

There is a technological advance in the production of ice cream. As a result, the supply curve of ice cream shifts and .

• A) rightward; the equilibrium price falls while the equilibrium quantity increases
• B) rightward; both the equilibrium price and equilibrium quantity fall
• C) rightward; both the equilibrium price and equilibrium quantity rise
• D) leftward; both the equilibrium price and equilibrium quantity fall

Analyze the allocation of manufacturing overhead using plantwide and activity-based costing rates.

Calculate the cost of serving customers and processing orders in an activity-based costing system.

Understand the difference between assigning costs to products and not assigning costs.

Determine the percentage of total overhead cost allocated to specific products.

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Definitions:

Recessional Moraine

A moraine that forms as the front of a glacier melts back and stagnates for some time in one location, depositing a pile of sediment.

Sediment

Particulate matter that accumulates in layers on the Earth's surface, deposited by water, wind, ice, or biological activity.

Esker

A long, winding ridge of stratified sand and gravel, deposited by meltwater from a retreating glacier or ice sheet.

Sediment

Particles of rock, minerals, or organic materials that have been transported and deposited by wind, water, or ice.