-Consider the Above Table

question 95

Multiple Choice

-Consider the above table. Assuming the government imposes a price ceiling on garbanzo beans of $4, what would be the likely result?

• A) a surplus of 2,000 garbanzo beans
• B) a shortage of 2,000 garbanzo beans
• C) no change, equilibrium would prevail
• D) The quantity demanded of garbanzo beans would fall to zero.

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Definitions:

Standard Costing

An accounting method that uses standard costs for direct materials, direct labor, and manufacturing overhead to value inventory and measure variance.

Traditional Approach

A common method used in accounting or finance that relies on historical or established practices for processing and analyzing data.

Control Costs

The process of monitoring and managing expenses to ensure they do not exceed the planned budget or resources.

Fixed Overhead Budget

A financial plan that outlines the expected fixed costs that are not dependent on the level of goods or services produced by the organization.