A Rise in the Price of a Substitute in Production

question 235

Multiple Choice

A rise in the price of a substitute in production for a good leads to

• A) an increase in the supply of that good.
• B) a decrease in the supply of that good.
• C) no change in the supply of that good; instead there is a change in the quantity supplied.
• D) a decrease in the quantity of that good supplied.
• E) no change in either the supply or the quantity supplied of the good.

Identify direct costs and indirect costs with respect to a specific cost object.

Define and differentiate between prime costs and conversion costs.

Understand the financial implications of depreciation on financial statements for both office and factory equipment.

Classify costs as either direct materials, direct labor, factory overhead, or nonmanufacturing costs.

---

Definitions:

Occupational Accidents

Unplanned events that occur during the course of work, resulting in injury, illness, or damage.

Productivity

The efficiency with which an individual, organization, or economy converts inputs into useful outputs.

Stress-Related Illnesses

Health issues directly influenced or exacerbated by stress, including mental and physical conditions.

Occupational Safety and Health Act

A law passed to ensure worker and workplace safety by setting and enforcing standards; oversees occupational health and safety in the United States.