The Supply Curve Shows

question 91

Multiple Choice

The supply curve shows

• A)the same basic information as the demand curve.
• B)who will have an opportunity to produce or purchase an item.
• C)the quantity produced as a function of the price.
• D)plots of what quantities have been sold over the past few weeks or months.

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Definitions:

Variable Costing

An accounting method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs and treats fixed manufacturing overhead as a period expense.

Contribution Format

A method of profit reporting that separates fixed and variable costs, highlighting the contribution margin of products, services, or business segments.

Variable Costing

A technique in managerial accounting where only variable production costs are charged to product units, differentiating it from absorption costing by not including fixed overhead.

Absorption Costing

A cost accounting method that includes all manufacturing costs, including both fixed and variable, in the cost of a product.