Suppose That Your Friend Victor Gives You a Bottle of Red

question 96

Multiple Choice

Suppose that your friend Victor gives you a bottle of red wine for your birthday, and tells you that only 100 bottles of that wine exist in the world. Suddenly the wine seems very important and special. This would seem to be due to the ____ principle.

• A) reciprocity
• B) consistency
• C) commitment
• D) scarcity

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Definitions:

Process Costing

An accounting methodology used for homogeneous products, where the costs are assigned to batches of products instead of individual units, suitable for manufacturing environments with continuous production processes.

Continuous Production

A manufacturing process where materials are produced without interruption across various stages of production, typically used for high-volume, low-variety products.

Raw Materials Inventory

Items and components stored that are used in the manufacturing process to create finished goods.

Stores Ledger Cards

A record-keeping tool that tracks the quantity and value of materials on hand in a storeroom.