Exhibit 4-4 Refer to Exhibit 4-4. Which of the Following Statements Is

question 55

Multiple Choice

Exhibit 4-4
Refer to Exhibit 4-4. Which of the following statements is false ?

• A)Graph (1): A price ceiling set at P₂ would not have an impact on the market.
• B)Graph (2): As supply increases, equilibrium price remains constant.
• C)Graph (3): As demand increases, equilibrium quantity remains constant.
• D)Graph (4): As supply increases, equilibrium quantity increases.

---

Definitions:

Work in Process Inventory

Represents the costs of unfinished goods in manufacturing at various stages of production.

Direct Labor Cost

The total cost of all labor directly involved in the production of goods or services, not including indirect labor costs like maintenance.

Work in Process Costs

Costs assigned to goods that are in the process of being manufactured but are not yet complete.

Manufacturing Costs Assigned

The allocation of manufacturing costs to individual products or job orders based on direct materials, direct labor, and applied overhead.