Which of the Following Statements Is TRUE

question 120

Multiple Choice

Which of the following statements is TRUE?

• A) A demand curve shows the relationship between a product's price and the number of units consumers want to buy at each price, assuming there are no changes in other factors affecting demand.
• B) A demand curve shows the relationship between consumer income and the quantity purchased of a product.
• C) A demand curve shows the relationship among consumer income, price of a product, quantity supplied, and the number of units of that product consumers want to buy.
• D) A demand curve is drawn with the assumption that demand equals supply.

---

Definitions:

Machine-Hour

A unit of measure indicating the operating time of a machine, used in costing to allocate expenses based on machine use.

Overhead Applied

The allocation of indirect costs to specific products or cost objects based on predetermined overhead rates.

Customizing Department

A department within a manufacturing or service firm dedicated to modifying products or services according to customer specifications.

Job T898

A specific reference or identifier for a job or order within a job-order costing system, used for tracking costs and production progress.