FIGURE 6-9 -Refer to Figure 6-9.In Part (Ii),the Consumer's Move from Point

question 36

Multiple Choice

FIGURE 6-9
-Refer to Figure 6-9.In part (ii) ,the consumer's move from point X to point Z is caused by

• A)a change in the consumer's preferences towards bread.
• B)an increase in money income.
• C)an increase in the price of bread.
• D)a decrease in the price of milk.
• E)a decrease in the price of bread.

---

Definitions:

Cost of Goods Sold

Directly incurred costs associated with the production of a company’s goods for sale, comprising material and labor expenses.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer is responsible for the goods and the shipping cost from the moment the goods leave the seller's premises.

Perpetual Inventory System

This method for accounting inventory immediately notes down any purchase or sale through the use of computerized point-of-sale systems and enterprise asset management software.

FOB Shipping Point

A term indicating that the buyer assumes ownership and responsibility for goods at the seller's location, and pays for shipping costs.