A Decrease in the Demand for the Output That an Input

question 62

Multiple Choice

A decrease in the demand for the output that an input produces will cause the input's:

• A) supply curve to shift to the right.
• B) supply curve to shift to the left.
• C) demand curve to shift to the right.
• D) demand curve to shift to the left.

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Definitions:

Job-Order Costing System

A cost accounting system that assigns manufacturing costs to a specific product or batches of products, often used in customized production environments.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a selected activity base, such as direct labor hours.

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities for machinery.

Fixed Manufacturing Overhead

The set of costs associated with the production process that do not change with the level of production, including rent, salaries, and insurance.