Exhibit 19-4 ​

question 180

Multiple Choice

Exhibit 19-4
​

-Refer to Exhibit 19-4. As a consequence of the depicted change in the supply of X, the demand curve for Y shifted from D₁ to D₂. It follows that

• A)X and Y are substitutes.
• B)X and Y are complements.
• C)X and Y are inferior goods.
• D)demand for Y is price elastic.

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Definitions:

Finished Goods

Items that have finished the production process and are available for purchase.

Overhead Applied

The allocation of overhead costs to specific jobs or cost objects based on a predetermined overhead rate, helping in accurately costing products or services.

Work in Process

Inventory that includes the raw materials, labor, and overhead costs for products that are in the production process but not yet complete.

Total Manufacturing Costs

The sum of all costs directly involved in the production of goods, including raw materials, direct labor, and manufacturing overhead.