Price Ceilings Generally Do Not Lead to Which of the Following

question 39

Multiple Choice

Price ceilings generally do not lead to which of the following?

• A)Persistent shortages
• B)A reduction in the quality of the good
• C)An increase in the number of units purchased
• D)The development of black markets

---

Definitions:

Volume Variance

The difference between the budgeted fixed overhead at 100% of normal capacity and the standard fixed overhead for the actual production achieved during the period.

Normal Capacity

The average level of operational output that a company can sustain with its current resources, over a specific period and under normal conditions.

Nonmanufacturing Activities

Business operations and activities that do not involve the production of goods, such as sales, marketing, and service delivery.

Manufacturing Activities

Tasks and processes involved in converting raw materials into finished goods, often including assembly, fabrication, and quality control.