The Supply of a Good or Service Is Determined by

question 10

Multiple Choice

The supply of a good or service is determined by

• A)those who buy the good or service.
• B)the government.
• C)those who sell the good or service.
• D)both those who buy and those who sell the good or service.

Understand the concept of standard hours and their use in variance analysis.

Learn the implications of using ideal vs. currently attainable standards in budgeting and variance analysis.

Gain insight into nonfinancial performance measures and their uses.

Understand the principles of cost behavior and how it impacts managerial accounting.

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Definitions:

Consignment

A business arrangement in which goods are left in the possession of another party to sell, with payment to the consignor occurring after sale.

Consignor

The Consignor is the person or entity who owns goods that are sent to another party, known as the consignee, to sell on their behalf.

Consignee

The individual or entity to whom goods are shipped to be sold on behalf of the consignor, who retains ownership until the goods are sold.

FIFO

An inventory valuation method that assumes that the first items placed into inventory are the first sold.