For Most Goods in an Economy,the Signal That Guides the Decisions

question 17

Multiple Choice

For most goods in an economy,the signal that guides the decisions of buyers and sellers is

• A)greed.
• B)consumer surplus.
• C)prices.
• D)profits.

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Definitions:

Activity Drivers

Factors that influence the costs and efficiency of business operations, serving as the basis for allocating expenses in activity-based costing.

Activities

In a business context, activities refer to all forms of operations and processes undertaken by an organization to achieve its objectives, including but not limited to operating, investing, and financing activities.

Departmental Overhead Rates

Specific rates used to allocate overhead costs to particular departments, based on their share of resources used or produced.

Cost Allocation Base

A method used to assign indirect costs to various cost objects, such as products or departments, usually based on time, units, or overhead.