The Phenomenon of Scarcity Stems from the Fact That

question 44

Multiple Choice

The phenomenon of scarcity stems from the fact that

• A)most economies' production methods are not very good.
• B)in most economies, wealthy people consume disproportionate quantities of goods and services.
• C)governments restricts production of too many goods and services.
• D)resources are limited.

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Definitions:

Denominator Level

In cost accounting, it refers to the standard quantity or activity used in calculating the predetermined overhead rate.

Variable Overhead Rate

The rate at which variable overhead costs are allocated to products, changing with the level of production.

Efficiency Variance

A measure in cost accounting that calculates the difference between the actual quantity of input used and the standard amount expected to be used, multiplied by the standard price.

Budget Variance

The difference between budgeted or planned financial performance and the actual performance.