The Distribution of Income Primarily Determines Which of the Fundamental

question 83

Multiple Choice

The distribution of income primarily determines which of the fundamental economic questions?

• A)What goods and services are to be produced?
• B)How are the goods and services to be produced?
• C)Who will receive the goods and services produced?
• D)How will the economy be planned?

Distinguish between process and job order cost systems.

Identify industries that typically use a process cost system.

Understand how to calculate the total cost of work in process.

Recognize the appropriate steps to complete a cost of production report in a process cost system.

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Definitions:

Trade Acceptance

A written promise or a draft by one party, the seller, to another, the buyer, to pay a specified sum of money at a future date.

Sight Draft

A financial instrument that is payable on demand when presented to the drawee.

Net Present Value

is a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Credit Sale

A transaction where the buyer is allowed to pay for goods or services at a later date, as opposed to paying at the time of sale.