Which of the Following Statements Is Correct

question 44

Multiple Choice

Which of the following statements is correct?

• A)The "law" of diminishing marginal utility implies that demand curves slope upward and to the right.
• B)If the price of a good falls, the utility-maximizing consumer will assure that marginal utility rises.
• C)If the price of a good falls, the consumer will purchase more of the good in order to maximize total utility.
• D)MU and demand have different underlying consumer behavior assumptions.

Grasp the fundamental accounting principles guiding managerial and financial accounting.

Understand the role of inventory management techniques such as just-in-time in reducing inventory levels and costs.

Distinguish between internal and external reporting requirements and their audiences.

Identify the managerial functions of planning, controlling, and directing, and their relevance in managerial accounting.

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Definitions:

Journal Entry

A documentation of a financial transaction in which the total debits equal the total credits and is entered into the accounting records.

Times Interest Earned Ratio

A financial ratio that compares a company's operating income to its interest expenses, indicating how well it can cover interest payments with earnings before interest and taxes.

Interpret

To explain or understand the meaning of something, often involving analysis or putting data into context.