Figure 4-11 -Refer to Figure 4-11.The Movement from Point a to Point

question 72

Multiple Choice

Figure 4-11
-Refer to Figure 4-11.The movement from point A to point B on the graph is called

• A)a decrease in supply.
• B)an increase in supply.
• C)an increase in the quantity supplied.
• D)a decrease in the quantity supplied.

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Definitions:

Closing Inventories

The total value of unsold goods and materials that a company holds at the end of its financial year, which is recorded as a current asset in the balance sheet.

Product Obsolescence

Occurs when a product becomes outdated and is no longer needed or wanted by consumers, often due to technological advances.

Physical Deterioration

The gradual loss of an asset's functional utility or value due to wear and tear or aging.

Material Wastage

The unwanted or unusable materials produced during a manufacturing or consumption process. It reflects inefficiency and can impact operational costs.