If There Is a Surplus in the Oil Market, Then

question 135

Multiple Choice

If there is a surplus in the oil market, then the price of oil will:

• A) rise.
• B) fall.
• C) remain unchanged.
• D) react unpredictably.

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Definitions:

Standard Cost System

An accounting method that uses standard costs for the cost of materials, labor, and overhead to evaluate performance and control costs.

Cost of Goods Sold

The total cost directly associated with producing goods which have been sold, including materials and labor.

Work in Process Inventories

Items in a manufacturing process that are not yet completed products, including raw materials, labor, and overhead costs.

Standard Cost Variances

refer to the differences between the expected (standard) costs and the actual costs incurred.