Every Economic System Requires a Means for Determining Resource Allocation

question 30

True/False

Every economic system requires a means for determining resource allocation.

---

Definitions:

Variable Manufacturing Overhead

Costs in manufacturing that vary with the level of production output, such as utilities or materials used in production.

Efficiency

The ratio of the output gained from a system to the input used, often used to evaluate the performance of a business operation or machine.

Standard Price

A pre-determined cost that is often used in budgeting and financial planning, serving as a benchmark for performance evaluation.

Direct Materials

Materials that become an integral part of a finished product and whose costs can be conveniently traced to it.