Which One of the Following Statements Is FALSE

question 339

Multiple Choice

Which one of the following statements is FALSE?

• A) There is an inverse (negative) relationship between product price and quantity supplied.
• B) There is some price at which quantity supplied of a product is zero.
• C) As product price increases, producers are willing to put more of the good on the market for sale.
• D) In order to entice producers to offer more of a product on the market for sale, product price must rise.

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Definitions:

Total Period Cost

The entire sum of expenses incurred by a business during a specific period, including both fixed and variable costs.

Absorption Costing

An accounting method that includes all manufacturing costs (direct labor, materials, and overhead) in the cost of a product.

Variable Costing

A bookkeeping approach that incorporates just the variable costs of production such as direct materials, direct labor, and variable manufacturing overhead into the costs of products.

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) divided by the number of units produced.