When Quantity Supplied Exceeds Quantity Demanded at the Current Market

question 220

True/False

When quantity supplied exceeds quantity demanded at the current market price, the market has a surplus, and market price will likely rise in the future to eliminate the surplus.

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Definitions:

Cost Drivers

Factors that cause changes in the cost of an activity or operation, influencing the total expenses.

Manufacturing Overheads

Expenses related to the manufacturing process that are not directly tied to the production of individual units, such as factory rent and machinery maintenance.

Activity-based System

An accounting method that assigns costs to products or services based on the activities that go into producing them, aiming for more accurate costing by tracing resources consumed by activities.

Activity Based Costing

An accounting method that allocates costs to products or services based on the activities that go into producing them, aiming to provide more accurate product cost information.