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What Are the Five Most Important Variables That Shift the Market

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What are the five most important variables that shift the market supply curve?


Definitions:

Variable Costing

An accounting method that only includes variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Selling Price

The amount of money charged for a product or service, or the sum of the value that customers exchange for the benefits of having or using the product or service.

Absorption Costing

An accounting method that includes all direct costs and allocated indirect costs (such as overhead) in the cost of a product.

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