When Prices Are Fixed for a Period of Time,such as with Long-Term

question 46

Multiple Choice

When prices are fixed for a period of time,such as with long-term contracts that fix wages,then

• A)the government needs to intervene to adjust prices.
• B)prices adjust,but not quickly enough to avoid shortages or surpluses.
• C)prices do not adjust to changes in market conditions.
• D)prices adjust instantly.
• E)None of the above.

Recognize the various types of standards (ideal, currently attainable) and their applications.

Differentiate between standard cost systems and other types of accounting systems.

Identify the role of accountants and managers in setting cost standards.

Understand the significance and process of revising standard costs.

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Definitions:

Regulatory Commissions

Independent agencies of the federal or state government tasked with the regulation of specific economic activities or behaviors, often focusing on industries like telecommunications, utilities, and securities.

Regulation

A set of rules or laws designed to control or govern conduct, typically implemented by a governmental body.

Social Regulation

The imposition of rules by government aimed at influencing the operation of businesses and individuals in areas such as health, safety, and environmental protection.