In 2011,the Price of Peanuts Was Rising,which Lead Peanut Butter

question 36

Multiple Choice

In 2011,the price of peanuts was rising,which lead peanut butter buyers to expect the price of peanut butter would rise in the future.Consequently,in the current market for peanut butter there was ________ which resulted in ________ in the price of peanut butter and ________ in the quantity of peanut butter.

• A) an increase in demand for peanut butter; an increase; an increase
• B) an increase in supply of peanut butter; a decrease; an increase
• C) a decrease in demand for peanut butter; a decrease; a decrease
• D) a decrease in supply of peanut butter; an increase; a decrease

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Definitions:

Direct Method

A cost allocation technique that assigns support department costs directly to producing departments without any intermediate allocation steps.

Janitorial Department

A dedicated division within an organization responsible for cleaning and maintaining the premises.

Cost Allocated

The process of distributing indirect costs to different departments, products, or projects within an organization.

Sales Department

The division within a business focused on sales and customer acquisition strategies.