Jasmine Bought a New Linda Lundstrom Coat for Both Style

question 113

Multiple Choice

Jasmine bought a new Linda Lundstrom coat for both style and warmth. Based on this information, which of the following statements is correct?

• A) By purchasing the coat, Jasmine was only satisfying her utilitarian needs.
• B) By purchasing the coat, Jasmine was only satisfying her hedonic needs.
• C) By purchasing the coat, Jasmine was satisfying her utilitarian and hedonic needs.
• D) By purchasing the coat, Jasmine was not satisfying any needs because people cannot satisfy needs, only wants.

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Definitions:

Budgeted Production

represents the amount of production planned for a future period as part of the budgeting process.

Standard Cost System

An accounting system that uses standard costs for cost control and decision making.

Materials Price Variance

The difference between the actual cost of materials and the expected cost at standard prices.

Direct Materials

The raw materials that are directly traceable to the production of a specific good or service.