The Supply Curve for Stand Up Paddle Boards

question 59

Multiple Choice

The supply curve for stand up paddle boards

• A)shifts when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
• B)shifts when the price of stand up paddle boards changes because the quantity supplied of stand up paddle boards is measured on the horizontal axis of the graph.
• C)does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the vertical axis of the graph.
• D)does not shift when the price of stand up paddle boards changes because the price of stand up paddle boards is measured on the horizontal axis of the graph.

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Definitions:

Direct Materials

Materials that are directly used in the production of a product and can be physically and easily traced to it.

Step-Down Method

A method used in cost accounting that allocates support department costs to producing departments in a sequential process, where each department's costs are allocated to other departments based on a predetermined order.

Service Department Costs

Expenses related to departments that do not directly generate revenue but provide essential support services to those that do.

Operating Departments

Divisions within an organization that are directly responsible for producing goods or providing services.