The Statement "People Have Unlimited Wants," Implies That People

question 29

Multiple Choice

The statement "people have unlimited wants," implies that people:

• A)always want more goods/services than they can purchase with their incomes.
• B)always have a desire to hold liquid money.
• C)always strive to be the best they can be.
• D)generally desire for goods and services which they can afford out of their income.
• E)try to earn more and more money as their experience at work increases.

---

Definitions:

Activity Rate

A ratio used to allocate costs to products or services based on the activities that are required to produce them.

Cost Pool

A grouping of individual costs in accounting, typically by department or service center, from which costs are allocated to products or services based on a relevant allocation base.

Overhead Costs

Expenses associated with the day-to-day running of a business that are not directly linked to the production or selling of goods and services.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered a part of the product’s cost.