Which of the Following Would Shift the Supply Curve for CDs

question 1

Multiple Choice

Which of the following would shift the supply curve for CDs to the right?

• A)a decrease in the price of materials used to make CDs
• B)a rise in the cost of labor used to make CDs
• C)an increase in the price of audio cassettes
• D)a decrease in the number of suppliers
• E)an increase in the price of CDs

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Definitions:

Support Department Costs

The costs associated with functions that assist the direct production or service departments of an organization, such as maintenance and administration.

Overhead Rates

The ratio used to allocate indirect costs to products or services, typically based on a measure such as labor hours or machine hours.

Personnel Costs

Expenses related to the compensation and benefits of employees, including wages, salaries, bonuses, and fringe benefits.

Volume-based Cost Driver

A factor that causes the cost of an activity or resource to increase, directly related to the volume of production or service delivery.