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If Both Supply and Demand Increase, _____ Will Increase, and _____

question 59

Multiple Choice

If both supply and demand increase, _____ will increase, and _____ is unclear.


Definitions:

Direct Materials

The raw materials that are directly used in the manufacturing process of a product.

Manufacturing Overhead

The indirect factory-related costs incurred when producing a product, including costs associated with maintenance, utilities, and salaries of supervisory personnel.

Direct Labor Costs

Expenses associated with employees who directly contribute to the manufacturing or production of goods in a company.

Annual Overhead Costs

The total expenses not directly tied to a product or service's production, incurred over a year, such as rent, utilities, and insurance.

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