Which of the Following Sets of Preferences Satisfies the Property

question 186

Multiple Choice

Which of the following sets of preferences satisfies the property of transitivity?

• A) Cookies are preferred to brownies. Brownies are preferred to ice cream. Ice cream is preferred to cookies.
• B) Cookies are preferred to pie. Brownies are preferred to pie. Pie is preferred to cookies.
• C) Cookies are preferred to ice cream. Ice cream is preferred to brownies. Cookies are preferred to brownies.
• D) Cookies are preferred to pie. Ice cream is preferred to cookies. Pie is preferred to ice cream.

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Definitions:

Attainable Standards

Realistic standards that can be achieved under current operating conditions, often used in cost and management accounting.

Standard Cost System

An accounting system that uses standard costs for product costs for the purposes of cost control and decision making.

Process Costing

An accounting methodology used for industries where production is continuous, attributing costs to units of product based on the processes they go through.

Job Order Costing

An accounting methodology used to assign manufacturing costs to an individual product or batches of products, often used in situations where each product is distinct.