Allocating Products with Long Lines, Using a First-Come, First-Served System

question 62

Multiple Choice

Allocating products with long lines, using a first-come, first-served system, is:

• A)the only way scarce goods can be allocated.
• B)necessary when waiting is a costless exercise.
• C)efficient, since people who are willing to wait the longest get the products.
• D)inefficient, because waiting wastes time.(True Answer )Correct

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Definitions:

Materials Ledger

A detailed record keeping system that tracks the quantity and cost of materials on hand, used primarily in manufacturing and production settings.

Finished Goods

Products that have completed the manufacturing process and are ready for sale.

Cost of Goods Sold

The immediate expenses linked to the creation of products that a company sells.

Accounts Payable

Liabilities owed by a business to creditors for goods and services purchased on credit.