Which of the Following Is the Best Example of "Creative

question 22

Multiple Choice

Which of the following is the best example of "creative destruction"?

• A) The imprudent use of a credit card by a family that already has a high level of debt.
• B) The virtual elimination of the film camera by the digital camera.
• C) The failure of a business because of poor management.
• D) The failure of a business because of higher cost resulting from government regulation.

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Definitions:

Work in Process

Work in process refers to the materials and goods partially completed during the manufacturing process.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, indicating how effectively materials costs are managed.

Raw Materials

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

Work in Process

Inventory that includes products that are in the production process but are not yet complete.