Assume Initially That the Price of X (The Quantity of Which

question 323

Multiple Choice

Assume initially that the price of X (the quantity of which is measured on the horizontal axis) is $9 and the price of Y (the quantity of which is measured on the vertical axis) is $4. If the price of X now declines to $6, the budget line will

• A)be unaffected.
• B)shift outward on the vertical axis.
• C)shift inward on the horizontal axis.
• D)shift outward on the horizontal axis.

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Definitions:

Equivalent Units

A concept used in cost accounting to represent the partial completion of goods in production, expressed in terms of fully completed units.

Molding Department

A specialized section in a manufacturing facility where raw materials are shaped into components through the molding process.

Weighted Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all units available for sale during the period.

Equivalent Units

A concept in cost accounting used to compute the costs associated with partially completed goods.