The Primary Criterion When Faced with a Resource Allocation Decision

question 57

Multiple Choice

The primary criterion when faced with a resource allocation decision is

• A)cost minimization.
• B)reduction in the amount of time required to perform a particular job.
• C)achievement of organizational goals.
• D)how well the alternative options help achieve organizational goals in relation to the costs incurred.
• E)improving information flow.

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Definitions:

Fungible Goods

Goods of which any unit is identical from another and can be substituted, such as grains, fuels, or money.

Equivalent Unit

A concept in cost accounting used to express the amount of work in progress inventory in terms of fully completed units of output.

Goods

Tangible personal property or merchandise.

UCC

The Uniform Commercial Code is a comprehensive set of laws governing all commercial transactions in the United States.