A Steep Drop in Plastics Production in 2008-2009 Can Be

question 13

Multiple Choice

A steep drop in plastics production in 2008-2009 can be attributed to the ____.

• A) World Trade Center bombing
• B) financial crisis that started in 2008
• C) wars in Afghanistan and Iraq
• D) demand for crude oil

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Definitions:

Short Run

A period in which at least one input is fixed and cannot be changed by the firm.

Variable Costing

A cost accounting method that includes only variable costs—costs that change with production levels—in product cost calculations.

Manufacturing Margin

The difference between the cost of manufacturing goods and the sale price, indicating the profitability of production activities.

Unsold Units

Inventory items that have not been sold by the end of a selling period, affecting inventory carrying costs and cash flow.