In a Simple Graphical Model of the Supply and Demand

question 19

Multiple Choice

In a simple graphical model of the supply and demand for pizza with the price of pizza measured vertically and the quantity of pizza measured horizontally:

• A) the supply curve slopes upward and to the right.
• B) the demand curve slopes upward and to the right.
• C) the supply curve slopes downward and to the right.
• D) at the equilibrium price, the supply of pizza exceeds the demand for pizza.

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Definitions:

Cost Drivers

Factors that cause variations in the cost of an activity or process, used in activity-based costing to allocate overhead costs more accurately.

Profit Center

A branch or division of a company that is directly responsible for generating a significant portion of the company's profits.

Support Department Allocations

The process of distributing the costs of support departments (e.g., human resources, maintenance) to producing departments based on their usage of services.

Operating Income Before

Income generated from normal business operations before deductions such as taxes and interest.