Criteria for Rationing Goods and Resources Must Be Established Because

question 178

Multiple Choice

Criteria for rationing goods and resources must be established because of

• A) the law of comparative advantage.
• B) the use of capitalism as a form of economic organization.
• C) the inability of politicians to develop efficient forms of economic organization.
• D) scarcity imposed by nature.

---

Definitions:

Gross Profit

The difference between sales revenue and cost of goods sold, indicating how effectively a company generates profit from direct expenses.

Inventory Cost Formula

A method used to determine the cost of an inventory item, including methods such as First-In, First-Out (FIFO), Last-In, First-Out (LIFO), and average cost.

Management

The process of planning, organizing, leading, and controlling an organization's resources to achieve specific goals.

FIFO

"First In, First Out," an inventory valuation method where the oldest inventory items are recorded as sold first.