The Supply of a Good or Service Is Determined by

question 10

Multiple Choice

The supply of a good or service is determined by

• A)those who buy the good or service.
• B)the government.
• C)those who sell the good or service.
• D)both those who buy and those who sell the good or service.

Understand how to calculate cost of goods sold (COGS) from manufacturing data.

Differentiate between manufacturing and non-manufacturing costs.

Calculate raw materials used in production and total manufacturing costs from given data.

Understand the classification of labor costs into direct labor and indirect labor (manufacturing overhead).

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Definitions:

Paid-In Capital

Funds raised by a company from selling its shares to investors, beyond the nominal value of the shares.

Cash Dividend

A payment made by a company out of its earnings to investors in the form of cash.

Dividend Declaration

An official announcement by a company’s board of directors to pay a specified dividend at a later date.

Common Dividend Payable

is a liability recorded on a company’s balance sheet representing the amount of dividends declared by the board of directors to be paid out to common stockholders.