Which of the Following Is False?
A) Rightward Shift $+$

question 30

Multiple Choice

Which of the following is false?

• A) Rightward shift in demand \(+\) unchanged supply curve \(=\) higher equilibrium price and larger equilibrium quantity.
• B) Rightward shift in demand + Rightward shift in supply curve = lower equilibrium price and smaller equilibrium quantity.
• C) Leftward shift in supply + unchanged demand curve = higher equilibrium price and smaller equilibrium quantity.
• D) Leftward shift in demand + unchanged supply curve = lower equilibrium price and smaller equilibrium quantity.

Understand how factory labor costs, including direct and indirect (manufacturing overhead) labor costs, are accounted.

Grasp the treatment of manufacturing overhead costs, including pre-determined rates, application, and the adjustment of over/under applied overhead.

Comprehend the significance of costing inventory according to GAAP, including the perpetual and periodic inventory systems.

Identify the documentation and ledgers used in job order costing, including job cost sheets and their relationship to work in process inventory.

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Definitions:

Overhead Cost

Expenses related to the day-to-day running of a business that are not directly linked to a specific product or service but are necessary for the business to operate.

Activity Rates

The specific costs associated with particular business activities, measured to allocate resources or assess performance.

Direct-Labor-Hours

The total hours worked by employees that are directly involved in the manufacturing process.

Predetermined Overhead Rate

A rate used to apply manufacturing overhead costs to products, calculated before the production period begins based on estimated costs and activity levels.