Which Statement(s) Is TRUE

question 52

Multiple Choice

Which statement(s) is TRUE?
I. Price floors are legally established minimum prices for goods and services.
II. Price floors create surpluses, whereas price ceilings create shortages.
III. Price floors reduce quality of goods and services.

• A) I and II only
• B) II only
• C) I, II, and III
• D) I only

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Definitions:

Company Policy

Guidelines and rules established by a company to govern its actions and decisions.

Units Purchased

This refers to the total quantity of goods or inventory bought by a company during a specific accounting period.

Ending Raw Materials

is the value of all raw materials that remain unused at the end of an accounting period, which will be used in future production processes.

Budgeted Materials Purchases

The projected amount of materials to be bought for production as planned within a budget period.