Use the Figure Below to Answer the Following Question(s)

question 15

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 10-4
-Starting from long-run equilibrium at point F in Figure 10-4, at which of the following points would short-run equilibrium occur following a drought in the Midwestern states?

• A)I
• B)F
• C)G

---

Definitions:

Standard Cost Card

A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product.

Standard Variable Cost

The budgeted, per-unit cost of variable elements of production, such as materials and labor, under normal operating conditions.

Direct Materials

The cost of raw materials that can be directly traced to the production process.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected standard cost, which can indicate changes in material costs over time.