One Would Speak of a Change in the Quantity of a Good

question 19

Multiple Choice

One would speak of a change in the quantity of a good supplied, rather than a change in supply, if

• A)supplier expectations about future prices change.
• B)the price of the good changes.
• C)the cost of producing the good changes.
• D)prices of substitutes in production change.

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Definitions:

Overapplied

In cost accounting, this refers to a situation where the allocated overhead costs exceed the actual overhead costs incurred.

Variable Overhead Rate

The per-unit cost of overhead that changes with the level of production or activity.

Efficiency Variances

The differences between actual costs and the standard or budgeted costs based on the efficient use of resources.

Fixed Manufacturing Overhead Budget

A predetermined estimate of the total fixed costs required to support production activities, excluding variable costs directly tied to production volume.