Management's Concern About 'Scarce Resource' Is Primarily Due To

question 60

Multiple Choice

Management's concern about 'scarce resource' is primarily due to:

• A)the desire to make the most efficient use of scarce resources.
• B)the desire to maximise total revenue.
• C)the desire to minimise total costs.
• D)social and environmental reasons.

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Definitions:

Inventory Level

The number of units of products or materials that are kept in stock by a business.

Period Cost

Costs that are taken directly to the income statement as an expense in the period in which they are incurred, not directly tied to the production of inventory.

Fixed Manufacturing Cost

Costs that remain constant regardless of production volume, including fixed overheads like lease payments, wages for full-time staff, and reduction in value of manufacturing machinery.

Long-Term Prices

Prices or rates expected to remain stable or predictable over an extended period, often relating to commodities or financial assets.