If a Company's Shares Are Expected to Perform Better Than

question 50

Multiple Choice

If a company's shares are expected to perform better than other companies in the same industry,there will be _______ for the company shares and a ____ in the share price.

• A) increased demand; rise
• B) decreased demand; rise
• C) increased supply; fall
• D) decreased supply; fall

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost assigned to a single unit of product, including direct materials, direct labor, and allocated overhead.

Absorption Costing

An approach in financial accounting that wraps all expenses incurred in manufacturing including direct materials, direct labor, and all overhead (variable and fixed), into the product's cost.