The Central Planning Approach Failed Because of Information and Incentives

question 270

True/False

The central planning approach failed because of information and incentives problems.

---

Definitions:

Inventory Levels

The quantity of goods and materials on hand at a particular time within a company.

Variable Costing Income Statement

A financial statement showing the costs that vary directly with the level of production, separated from fixed costs.

Variable Costs

Costs that vary in relation to a company's operations.

Manufacturing Margin

The difference between the cost of goods manufactured and the sales revenue generated from those goods.