Which of the Following Is True

question 39

Multiple Choice

Which of the following is true?

• A) When a market price allocates resources, all people who are willing and able to pay that price get the resource.
• B) A command system works well when the range of activities to be monitored is large and complex.
• C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by market prices.
• D) When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a lottery.

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Definitions:

Direct Materials

Divulged as essential components, direct materials primarily encompass tangible substances employed in the fabrication of a product, distinctly identifiable in the final offering.

Materials Requisitions

A document used to request the transfer of materials from a storeroom to a production area.

Controlling Account

The account in the general ledger that summarizes the balances of the accounts in a subsidiary ledger.

General Ledger

The primary ledger, when used in conjunction with subsidiary ledgers, that contains all of the balance sheet and income statement accounts.