The Signals That Guide the Allocation of Resources in a Market

question 5

Multiple Choice

The signals that guide the allocation of resources in a market economy are

• A)surpluses and shortages.
• B)quantities.
• C)government policies.
• D)prices.

Calculate the cost of goods manufactured based on given inventory and cost data.

Interpret the role of beginning and ending inventories in the calculation of cost of goods sold and cost of goods manufactured.

Understand the classification of costs as either inventoriable or period costs and their impact on financial statements.

Analyze how direct labor, direct materials, and manufacturing overhead contribute to the total manufacturing costs.