Which of the Following Statements Is False

question 193

Multiple Choice

Which of the following statements is false?

• A) A change in the price of good X will usually change the quantity supplied of good X,ceteris paribus.
• B) A change in the number of sellers of a good can change the supply of that good.
• C) Price and quantity supplied are directly related.
• D) A vertical supply curve represents a direct relationship between price and quantity supplied.

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Definitions:

Variable Overhead Rate Variance

The difference between the actual variable overhead costs incurred and the standard cost allocated, indicating inefficiencies or cost control issues.

Favorable

A term used in accounting to describe a situation where actual costs are less than the budgeted or standard costs.

Unfavorable

A term used in variance analysis to describe a variance that leads to a decrease in profit compared to budgeted or standard costs.

Fixed Manufacturing Overhead

The portion of total manufacturing overhead costs that does not vary with the level of production or output.