A Principal Feature of a Command Economy Is That ____________

question 84

Multiple Choice

A principal feature of a command economy is that ____________.

• A) production decisions are made by profit-maximizing firms.
• B) there is a central planning board at the top, which transmits economic decisions down to the various producing and consuming units below.
• C) consumers are allowed to determine that is produced based on their demand for goods and services.
• D) regulatory agencies constrain the most egregious forms of market power in a market system of allocation.

Prepare journal entries for transactions related to a process costing system.

Understand the role of cost reconciliation reports in process costing and how to interpret them.

Evaluate the assignment of costs to units in work in process and completed units.

Apply the weighted-average method in process costing to determine equivalent units of production.

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Definitions:

Leon Festinger

An American social psychologist renowned for developing the theory of cognitive dissonance, which describes the psychological discomfort resulting from holding contradictory beliefs or attitudes.

Theory

A general principle or set of principles proposed to explain how a number of separate facts are related.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more contradictory beliefs, values, or ideas simultaneously.

Inconsistencies

Occurrences of being in conflict or not being consistent in thoughts, behaviors, or actions.