Which of the Following Is Evidence of a Shortage of Macadamias

question 30

Multiple Choice

Which of the following is evidence of a shortage of macadamias?

• A)Firms lower the price of macadamias.
• B)The price of cashews is lowered in order to make up for the macadamia shortage.
• C)The equilibrium price of macadamias falls due to a decrease in demand.
• D)The quantity demanded of macadamias is greater than the quantity supplied.

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Definitions:

Plantwide Overhead Rate

A single overhead rate calculated for an entire manufacturing plant, used to allocate indirect costs to products based on a common base such as labor hours or machine hours.

Activity-Based Costing

A cost accounting method that assigns costs to products or services based on the activities that go into producing them.

Manufacturing Overhead

Expenses related to the production process that are not directly tied to a specific product, including utilities, depreciation, and maintenance of equipment.

Time-Driven

Refers to actions or processes that are initiated or executed based on the passage of time or at specific time intervals.