Frank and Samantha Just Received a Large Inheritance When Samantha's

question 14

Multiple Choice

Frank and Samantha just received a large inheritance when Samantha's grandmother passed away. Samantha said she wanted to use the money to build an addition onto their house. Frank said he wanted to buy a more fuel-efficient car. Which of the following is true about this situation?

• A)This is an example of conflict, because it involves an expressed struggle.
• B)This is an example of conflict, because it involves scarce resources.
• C)This is an example of conflict, because it involves incompatible goals.
• D)All of these are true.

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Definitions:

Raw Material

The basic materials and substances used in the initial stages of production to manufacture goods.

Work in Process

Inventory that includes materials that are currently being processed into finished goods but are not yet complete.

Property, Plant, and Equipment

Long-term tangible assets used in the operation of a business that are expected to be used over several years, including buildings, machinery, and vehicles.

Direct Materials Variances

The difference between the budgeted cost of direct materials and the actual cost incurred.