The Problem of Scarcity

question 12

Multiple Choice

The problem of scarcity

• A)arises only in poor countries.
• B)exists because the price of goods is too high.
• C)exists because of limited resources.
• D)will eventually be solved by better planning.

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Definitions:

Work In Process Inventory

Assets in production that are not yet complete, representing investment in materials, labor, and overhead costs not yet ready for sale.

Fixed Overhead Budget Variance

The difference between the budgeted fixed overhead costs and the actual fixed overhead costs incurred.

Standard Costing System

An accounting system that uses standard costs for cost control and decision-making purposes.

Direct Labour Hours

The number of hours worked by employees who are directly involved in the production of goods or services.