Figure 4-10 -Refer to Figure 4-10.Which of the Following Would Cause the Following

question 552

Multiple Choice

Figure 4-10

-Refer to Figure 4-10.Which of the following would cause the supply curve to shift from Supply B to Supply A in the market for disposable ballpoint pens?

• A) a decrease in the price of disposable ballpoint pens
• B) an increase in the price of fountain pens
• C) an increase in the price of ink
• D) an improvement in technology that allows firms to use less labor in the production of disposable ballpoint pens

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Definitions:

Unadjusted Cost of Goods Sold

The initial calculation of the cost of goods sold that has not been modified for returns, allowances, or discounts.

Overapplied Manufacturing Overhead

A scenario where the allocated manufacturing overhead costs exceed the actual overhead costs incurred, resulting in a credit balance.

Predetermined Overhead Rate

This is a rate used to allocate manufacturing overhead costs to individual units of production, based on a certain activity, such as labor hours or machine hours.

Direct Materials

Substances that can be directly linked to the manufacturing of a particular item.