Individual Demand Curves Are Summed Horizontally to Obtain the Market

question 95

True/False

Individual demand curves are summed horizontally to obtain the market demand curve.

---

Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods.

Assembly Department

A section of a manufacturing facility where components are put together to form a finished product.

Manufacturing Overhead

All manufacturing costs other than direct materials and direct labor, not directly attributable to a specific product.

Weighted-Average Cost Method

An inventory costing method that assigns a weighted average cost to each unit of inventory on hand.