Supplies Originally Cost $600,but Only $150 Worth of Supplies Were

question 6

Multiple Choice

Supplies originally cost $600,but only $150 worth of supplies were used this period.The adjusting entry would be

• A) debit Supplies Expense,$150; credit Supplies,$150.
• B) debit Supplies Expense,$450; credit Supplies,$450.
• C) debit Supplies,$150; credit Supplies Expense,$150.
• D) debit Supplies,$450; credit Supplies Expense,$450.

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Definitions:

Total Costs

The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.

Total Revenues

The total amount of money generated by a firm or entity from its business activities, before any expenses are subtracted.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Long-Run Equilibrium

Long-run equilibrium occurs when an economy's resources are fully employed and the output and input markets are in balance, with no external forces causing disruption.