Which of the Following Could Cause an Increase in the Supply

question 155

Multiple Choice

Which of the following could cause an increase in the supply of wheat?

• A)A decrease in the price of oats.
• B)An imposition of a sales tax on wheat.
• C)An increase in the price of fertilizer.
• D)Producers expect the price of wheat to increase.

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Definitions:

Overapplied Manufacturing Overhead

Occurs when the allocated manufacturing overhead costs are more than the actual overhead costs incurred.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense.

Underapplied Manufacturing Overhead

A situation where the allocated manufacturing overhead costs are less than the actual overhead costs.