Which of the Following Would Cause an Increase in the Supply

question 186

Multiple Choice

Which of the following would cause an increase in the supply of a product at a given price?

• A)an increase in the price of the product
• B)a decrease in the cost of producing a substitute product
• C)an increase in the cost of resources to produce the product
• D)a reduction in the cost of resources to produce the product

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Definitions:

Standard Costs

Predetermined costs calculated for direct materials, labor, and overhead, used as a benchmark to measure performance.

Actual Costs

The real expenses incurred in the production of goods or services, as opposed to estimated or budgeted costs.

Fixed Factory Overhead Volume Variance

The difference between the budgeted and actual fixed overhead costs, attributable to changes in production volume.

Standard Factory Overhead Rate

A predetermined rate used to assign manufacturing overhead costs to individual units of output on a consistent basis.