Consider a Market in Which There Is a Government-Set Price

question 67

Multiple Choice

Consider a market in which there is a government-set price.If there is excess demand at this price,

• A)the market is in its free-market equilibrium.
• B)the market is in disequilibrium.
• C)there are unsuccessful sellers.
• D)the product has not reached the point of saturation.
• E)none of the product will be exchanged.

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Definitions:

Machine-Hours

A measurement of the amount of time a machine is operated, used as a basis for allocating machine-related costs to products.

Job-Order Costing

An accounting methodology that assigns costs to specific production batches or jobs, useful for custom or unique products.

Unit Product Cost

The calculated cost of a single unit of product that includes direct materials, direct labor, and manufacturing overhead.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, calculated before the period begins based on estimated costs and activity levels.