-Which Figure Above Shows the Effect of an Increase in the Cost

question 267

Multiple Choice

-Which figure above shows the effect of an increase in the cost of the tomato sauce used to produce pizza?

• A) Figure A
• B) Figure B
• C) Figure C
• D) Figure D
• E) Both Figure B and Figure C

---

Definitions:

Budget Selling Price

The anticipated price at which a product is expected to be sold, determined during the budgeting process.

Actual Production

The real, measurable output of goods or services produced by a company during a specific period.

Overhead Application

A method of assigning overhead costs to specific products or job orders based on a predetermined overhead rate.

Direct Labour Hours

The hours worked by employees directly involved in the manufacturing process, used to allocate labor costs to products.