Because Most Communities Have a Large Number of Similar but Not

question 64

Multiple Choice

Because most communities have a large number of similar but not identical substitutes,the market for financial planners is BEST considered to be:

• A)a monopoly.
• B)an oligopoly.
• C)perfect competition.
• D)monopolistically competitive.

---

Definitions:

Purchasing Agent

An individual or company responsible for buying goods and services for another company or organization.

Fixed Overhead Volume Variance

Fixed overhead volume variance is the difference between the budgeted and actual volume of production, multiplied by the fixed overhead rate, indicating efficiency in production volume.

Predetermined Fixed Overhead Rate

A rate used to allocate fixed overhead costs to produced goods, based on estimated costs and activity levels.

Denominator Activity

The level of activity used to allocate fixed costs in a costing system.