If the United States Changed Its Laws to Allow for the Legal

question 82

Multiple Choice

If the United States changed its laws to allow for the legal sale of a kidney,which of the following is least likely to occur?

• A)The supply of kidneys would increase.
• B)The shortage of kidneys would decrease.
• C)Many lives would be saved.
• D)The allocation of kidneys would be fair.

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Definitions:

Period Costs

Expenses that are recognized in the income statement when incurred, instead of being tied to inventory, include utilities and rent for office space.

Selling Expenses

Costs incurred directly and indirectly in selling products or services, including advertising, sales staff salaries, and commission.

Administrative Expenses

Expenses that relate to the general operation of a company and do not directly tie to production activities, such as office supplies and salaries of administrative personnel.

Direct Labor

The labor costs of workers who are directly involved in manufacturing a product or providing a service.