If Autonomous Consumption Decreases,then

question 19

Multiple Choice

If autonomous consumption decreases,then

• A)The AD curve will shift to the right.
• B)The AD curve will shift to the left.
• C)There will be a movement to the left along the AD curve.
• D)The AD curve will not be affecteD.In this case,the autonomous consumption category falls,so the AD curve would decrease,thereby shifting to the left.

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Definitions:

Manufacturing Overhead

All indirect costs related to the production process, such as the costs of maintenance, supplies, and utilities, excluding direct materials and direct labor.

Direct Labor-Hour

A measure of labor productivity that indicates the amount of labor input in terms of hours for producing one unit of output.

Job-Order Costing

A cost accounting system in which costs are assigned to specific jobs or batches, used in industries where goods or services are produced upon request.

T-Accounts

A tool used in accounting to represent the credits and debits for each transaction that occurs for each account within the double-entry bookkeeping system.