The Point at Which the Quantity of a Product or Service

question 2

Multiple Choice

The point at which the quantity of a product or service demanded is the same as the quantity supplied is called

• A) the surplus point.
• B) the equilibrium point.
• C) the supply point.
• D) the profit point.
• E) the demand point.

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Definitions:

Variable Overhead Rate Variance

The variance between the actual variable overhead costs that were incurred and the anticipated variable overhead calculated according to the real amount of activity.

Supplies Cost

The expense incurred to acquire supplies necessary for the production of goods or the operation of a business.

Variable Overhead Efficiency Variance

The difference between the actual variable overhead costs incurred and the expected variable overhead costs based on standard cost accounting practices.

Direct Labor-hours

The whole amount of production time by workers intimately involved in manufacturing.