Which of the Following Increases the Demand for a Good

question 118

Multiple Choice

Which of the following increases the demand for a good?

• A) A rise in the price of a complement.
• B) A decrease in the number of buyers.
• C) The expectation that future income will be higher.
• D) A fall in the price of a substitute.
• E) An increase in income, assuming the good is an inferior good.

Understand the principle of standard costing and variance analysis.

Prepare journal entries for variances and standard costing adjustments.

Calculate total direct labor cost variances and identify variances as favorable or unfavorable.

Understand the difference between actual and standard overhead costs.

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Definitions:

Goods

Physical items that are produced, bought, or sold with the aim to satisfy the wants or needs of consumers.

Services

Actions or activities provided to satisfy the needs and wants of consumers without resulting in the ownership of a tangible product.

Seller

An individual or entity that offers goods or services for sale.

Cash Discount

An incentive for early payment, reducing the buyer's total amount owed.