Which of the Following Is TRUE

question 89

Multiple Choice

Which of the following is TRUE?

• A) When a market price allocates resources, all people who are willing and able to pay that price get the resource.
• B) A command system works well when the range of activities to be monitored is large and complex.
• C) When the government decides how to allocate tax dollars among competing uses, resources are allocated by market prices.
• D) When a manager offers everyone in the company the opportunity to win a prize, resources are allocated by a lottery.

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Definitions:

Accounting Principles

Guidelines and rules that govern the process of reporting financial information and preparing financial statements.

Deferred Tax Asset

An item on a company's balance sheet that is used to decrease future tax liability due to temporary timing differences in income recognition.

Warranty Costs

Expenses incurred by a company for repairing, replacing, or refunding products that have failed within the warranty period.

Income Tax Rate

The income tax rate is the percentage at which an individual or corporation is taxed on their income, varying by jurisdiction and income level.