Use the Following to Answer Questions

question 164

Multiple Choice

Use the following to answer questions:
Figure: Dishwashing Detergent
-(Figure: Dishwashing Detergent) Refer to the figure. Dishwashing detergent contains phosphates that harm marine life. In this figure, the market equilibrium quantity is ______ units, and the efficient quantity is ______.

• A) 6; 9
• B) 12; 6
• C) 9; 6
• D) 12; 9

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Definitions:

Perpetual

A system of inventory management wherein updates are made continuously to the inventory accounts after each purchase or sale.

Receiving Report

A document that records the details of goods received by a company, ensuring the quantities match the order and invoice.

Vendor's Invoice

A document issued by a vendor to a buyer indicating the products or services provided, quantities, prices, and terms of payment.

Perpetual

Continuing indefinitely without interruption; in accounting, it often refers to systems that continuously update inventory or records.