If the Cost of Producing a Good or Service Increases,the

question 10

Multiple Choice

If the cost of producing a good or service increases,the supply curve will shift to the _____ and the price will _____.

• A)right;fall
• B)right;rise
• C)left;fall
• D)left;rise

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Definitions:

Direct Labor

Labor costs directly associated with the production of goods or services, involving work that can be directly traced back to specific products.

Direct Materials Price Variance

A measurement of the difference between the actual cost of direct materials and the standard cost expected to be paid, expressed in monetary terms.

Direct Materials Quantity Variance

A measure of the difference between the actual quantity of materials used in production and the standard amount expected, valued at the standard cost.

Variable Overhead

Costs incurred during production that fluctuate with production volume, such as utilities or materials.