-Refer to the Above Graph to Answer This Question

question 122

Multiple Choice

-Refer to the above graph to answer this question.How could you describe the movement from point D to point A?

• A)A decrease in supply which leads to an increase in the equilibrium price and a decrease in demand.
• B)A decrease in supply which leads to an increase in the equilibrium price and a decrease in quantity demanded.
• C)A decrease in demand which leads to an increase in the equilibrium price and a decrease in the quantity supplied.
• D)A decrease in demand which leads to an increase in the equilibrium price and a decrease in supply.
• E)A decrease in supply which leads to a decrease in the equilibrium price a decrease in demand.

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Definitions:

Predetermined Factory Overhead Rate

The rate used to apply factory overhead costs to the goods manufactured. The rate is determined by dividing the estimated total factory overhead costs by the estimated activity base at the beginning of the fiscal period.

Factory Overhead Costs

Expenses related to running a factory that cannot be directly attributed to specific units produced, such as maintenance and utilities.

Value-Added Time

The portion of the production process where actual value is added to the product, as opposed to non-value-added activities.

Processing Time

The amount of time required to complete a particular process, often used in manufacturing and computer operations.