Over the Previous Year, 2,000 Boxes of Antihistamine Tablets Were

question 35

Multiple Choice

Over the previous year, 2,000 boxes of antihistamine tablets were sold at a price of $20 per box, and during the current year, 2,500 boxes of tablets were sold at $25 a box.The most likely interpretation of these data is that the

• A)supply and demand curves are shifting to the right.
• B)supply and demand curves are shifting to the left.
• C)the supply curve has shifted to the left, with no change in demand.
• D)the demand curve has shifted to the right, with no change in supply.

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Definitions:

Direct Labor-Hours

The aggregate number of hours that workers, who are directly part of producing goods or services, contribute.

Job-Order Costing

A cost accounting system that assigns costs to specific production batches or jobs, enabling the calculation of the cost per job.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production based on a specific activity base.

Machine-Hours

A measure of the amount of time a machine is used during the production process, often used in costing and budgeting.