The Following Would Cause an Upward Shift in the C

question 153

Multiple Choice

The following would cause an upward shift in the C + I + G + X curve EXCEPT

• A) an increase in disposable income.
• B) an increase in export spending.
• C) a decrease in import spending
• D) an increase in household wealth.

Differentiate between absorption and variable costing.

Calculate net income under variable and absorption costing.

Understand the impact of operational decisions on net income.

Calculate and understand contribution margin.

---

Definitions:

Ordering Costs

Expenses associated with placing orders for inventory, including administrative expenses, delivery charges, and any other costs related to buying goods or services.

Carrying Costs

Carrying costs are the total expenses associated with holding or storing inventories over a certain period.

Set-Up Costs

Initial expenses incurred during the establishment of a new business or production line, including equipment and installation fees.

Storage Costs

Expenses associated with keeping goods in a warehouse or storage facility until they are sold or used.