A Decrease in Consumer Income Decreases the Demand for Compact

question 100

Multiple Choice

A decrease in consumer income decreases the demand for compact discs. As a result of the change to a new equilibrium, there is a(n) :

• A) leftward shift of the supply curve.
• B) rightward shift of the supply curve.
• C) upward movement along the supply curve.
• D) downward movement along the supply curve.

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Definitions:

Transferred Out

In cost accounting, refers to the costs that have been moved from one production department to another in the process of manufacturing.

Predetermined Overhead Allocation Rate

This rate is calculated before the accounting period begins and is used to allocate overhead costs to products or services based on a specific activity base.

Direct Labor Cost

The wages and benefits paid to workers who are directly involved in the production of goods.

Equivalent Units

A term used in cost accounting to represent a conversion of partially completed goods into a number of fully completed units.