The Following Appeared in a Florida Newspaper a Week After

question 214

Multiple Choice

The following appeared in a Florida newspaper a week after a hurricane hit the state."Floridians are relieved that the storm produced no fatalities but homeowners face weeks, if not months, of rebuilding.Matters are made worse by the soaring prices of plywood and other building materials that always follow in a hurricane's path.Complaints of profiteering and price gouging have not deterred firms from raising their prices by over 100 percent." Which of the following offers the best explanation for the price increases referred to in the article?

• A)The hurricane reduced the number of suppliers of building materials.
• B)The hurricane created an artificial shortage of building materials.
• C)The hurricane caused an increase in the demand for building materials.
• D)There was a reduction in supply as firms shipped plywood and other materials to locations not affected by the storm.

Compute the selling prices of jobs using markups on manufacturing costs.

Analyze the effects of different costing methods (plantwide vs. departmental) on job costs.

Understand activity-based costing (ABC) and its application to manufacturing overhead allocation.

Calculate unit product costs using traditional and ABC systems.

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Definitions:

Neem Oil Treatment

The application of neem oil, derived from the neem tree, as a natural pesticide to control pests and diseases in agriculture and horticulture.

Difference-In-Differences

Difference-in-differences is a method for identifying causality by looking at the way in which the average change over time in the outcome variable is compared to the average change in a control group.

Causality

The relationship between cause and effect, often established through correlation and experimentation.

Outcome Variable

The variable in a study or experiment that is measured to assess the effect of the treatment or intervention.