When Does Scarcity Exist

question 135

Multiple Choice

When does scarcity exist?

• A) when there is less than an infinite amount of a resource or good
• B) when society can meet the wants of every individual
• C) when there is less of a good or resource available than people wish to have
• D) when the government fails to produce goods

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Definitions:

Fixed Overhead Budget

The fixed overhead budget is a financial plan that estimates the fixed costs associated with production, which do not vary with the level of output.

Volume Variance

A measure of the difference between the expected (budgeted) volume of sales or production and the actual volume, used in cost accounting and financial analysis.

Budget Variance

The difference between the budgeted or planned financial activity and the actual financial performance.

Volume Variance

The difference between the expected amount of output at the standard cost and the actual amount produced, measured at the standard cost.