-The Above Figure Shows the Market for Petrol

question 153

Multiple Choice

-The above figure shows the market for petrol. When a cyclone destroys a major refinery that refines oil into petrol, the

• A)demand curve for petrol shifts from D1 to D2 and the supply curve of petrol shifts from S2 to S₁.
• B)demand curve for petrol does not shift, and the supply curve of petrol shifts from S1 to S2.
• C)demand curve for petrol does not shift, and the supply curve of petrol shifts from S2 to S1.
• D)demand curve for petrol shifts from D1 to D2 and the supply curve of petrol does not shift.

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Definitions:

Allocation

The process of assigning costs or resources to various departments, products, or activities based on specific criteria.

Schedule of Cost

A detailed list or report showing the various costs associated with a project or production, including direct and indirect costs.

Goods Manufactured

The completed products that are ready for sale, resulting from the manufacturing process.

Job-Order Costing

A cost accounting system where costs are assigned to specific jobs or batches, used in industries where goods or services are produced upon request.