Which of the Following Is a Problem Inherent in Centrally

question 73

Multiple Choice

Which of the following is a problem inherent in centrally planned economies?

• A)There are no problems and everyone,including consumers,is satisfied.
• B)There is too much production of low-cost,high-quality goods and services.
• C)Production managers are more concerned with satisfying government's orders than with satisfying consumer wants.
• D)Unemployment is too high.

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Definitions:

Manufacturing Overhead Costs

Indirect costs associated with manufacturing, including costs of running the factory, maintenance, and utilities, that cannot be directly traced to a product.

Job-Order Costing

An accounting system that accumulates costs according to individual jobs rather than processes or time periods.

Process Costing

A costing method used for homogeneous products, where costs are accumulated for a continuous process and then assigned to units of output.

Weighted-Average Method

An inventory valuation method that calculates the cost of goods sold and ending inventory based on the average cost of all similar items in inventory.