In a Command System, Resources Are Allocated by

question 86

Multiple Choice

In a command system, resources are allocated by

• A)people who show interest to use the resources.
• B)people who are able to pay for the resources.
• C)market price.
• D)the order of someone in authority.
• E)those people who come first in line.

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Definitions:

Insufficient Demand

A situation where the quantity of a product or service desired by consumers is less than what is supplied in the market.

Excessive Inventories

A situation where a company holds more stock than what is effectively required, leading to increased storage costs and possible obsolescence.

Quantity Standard

The predetermined amount of materials, labor, and overhead that should be used for each unit of production.

Unit Of Product

A single item or instance of a product manufactured or sold by a company.