If There Is a Surplus of a Product, We Can

question 80

Multiple Choice

If there is a surplus of a product, we can conclude that

• A)the product's price is above equilibrium.
• B)the product's price is too low for equilibrium.
• C)quantity demanded exceeds quantity supplied.
• D)the product's price will rise.
• E)consumers want to buy more than is being made available by producers.

---

Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (variable and fixed) in the cost of a product.

Unit Product Cost

Unit product cost is the total cost associated with producing one unit of a product, including all variable and fixed costs.

Direct Labor Cost

The total expense a company incurs for employees who work directly on the manufacturing or production of products.

Variable Costing

An accounting method that only allocates variable costs to inventory, treating fixed costs as expenses of the period.