Which of the Following Would Shift the Long-Run Aggregate Supply

question 134

Multiple Choice

Which of the following would shift the long-run aggregate supply curve right?

• A)Both an increase in the capital stock and an increase in the price level
• B)An increase in the capital stock, but not an increase in the price level
• C)An increase in the money supply, but not an increase in the capital stock
• D)Neither an increase in the money supply nor an increase in the capital stock

Recognize cost drivers and their importance in cost behavior analysis.

Understand the concept of discretionary costs.

Apply mathematical models to calculate service department costs.

Differentiate between various cost estimation methods, including regression analysis and the high-low method.

---

Definitions:

Conversion Costs

Costs incurred to convert raw materials into finished products, typically including direct labor and manufacturing overhead.

Machine Operator's Wages

The compensation paid to workers who operate machinery, typically categorized as direct labor costs in manufacturing.

First-In-First-Out (FIFO)

An inventory valuation method where the oldest inventory items are used up or sold first.

Work in Process

This term refers to the materials, labor, and overhead costs for products that are in the production process but are not yet complete.