A. Specifications
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Specialization benefits buyers and sellers. Focusing on a limited number of related products or services allows them to use capital and labor more efficiently.So , buyers get better products at lower price and sellers sell more products and they manufacture more products at lower costs.
Answer:
Firstly packaging and labeling costs can be either be charged on variable overheads cost or on selling overheads costs( distribution and marketing cost).
Assuming they are charged on Selling overheads cost:
There are no figures to illustrate the change on inventory cost as a result of moving Labeling and packaging from selling overheads to Direct Costs ( DC) but indefinitely when there are new costs charged to the direct costs of inventory, inventory cost will increase by their exact costs.
If they are charged on Variable overheads then they are already part of inventory cost as is variable cost on Work in process therefore there wont be change in inventory cost just change in direct material.
Explanation:
I believe the information above is best supported by; the fact that producer surplus will increase if the price rises from $ 8 per unit to $10. This is due to the fact that there is a shortage in the market therefore demand will increase, this results to customers wanting to buy at a higher price than the initial cost, to satisfy their demand and need
