The Problem of Scarce Resources

question 143

Multiple Choice

The problem of scarce resources:

• A)means that there are not enough jobs in some cities.
• B)could be solved if the unemployment rate fell.
• C)is that there are not enough resources to satisfy people's unlimited wants.
• D)is that resources are used inefficiently.
• E)can be solved by lowering taxes.

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Definitions:

Price Variance

The difference between the actual price paid for a good or service and its expected (budgeted) price.

Standard Cost Cards

Documentation that records the expected costs of materials, labor, and overhead for a product, used for budgeting and performance evaluation.

Work in Process

Work in Process (WIP) is an account used in inventory accounting that tracks the cost of materials and labor for products that are at various stages of production but are not yet completed.

Overhead Controllable Variance

The difference between actual and budgeted overhead costs that is directly manageable or controllable by management.