Resource Pricing Is Important Because

question 149

Multiple Choice

Resource pricing is important because

• A)resource prices are a major determinant of money incomes.
• B)resource prices allocate scarce resources among alternative uses.
• C)resource prices, along with resource productivity, are important to firms in minimizing their costs.
• D)of all these reasons.

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Definitions:

Resource Consumption

The act of using resources, such as materials, time, and energy, in the process of producing goods and services.

Activity-Based Costing

Activity-based costing is an accounting method that assigns costs to products and services based on the activities and resources that go into producing them.

Equipment Depreciation

The allocation of the cost of physical assets over its useful life, recognizing wear and tear over time.

Activity Cost Pools

Groupings of all costs associated with particular activities, which are then allocated to products or services based on their use of those activities.