Which of the Following Statements Is True

question 34

Multiple Choice

Which of the following statements is true?

• A)Since regulators are concerned with the social cost of a failure, regulatory models will normally tend to be more conservative than private sector models that are concerned only with the private costs of failure.
• B)Since regulators are concerned with the social cost of a failure, regulatory models will normally tend to be less conservative than private sector models that are concerned only with the private costs of failure.
• C)Regulators and private firms are both concerned with the social cost of a failure and thus their models do not differ.
• D)None of the listed options are correct.

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Definitions:

Spending Variance

The difference between the actual amount spent and the budgeted amount for a particular expense category in a specific period.

Catering Supplies

Items such as utensils, dishes, and food ingredients required for preparing and serving food in catering services.

Jobs

Individual units or batches of work that can be distinguished from each other in a manufacturing or service delivery process.

Supplies Cost

The cost associated with materials and items used in the operation of a business but not directly tied to the products being manufactured or services provided.