When the Government Policy Is to Regulate the Quantity of a Good

question 168

Multiple Choice

When the government policy is to regulate the quantity of a good that can be bought and sold rather than the price at which it is transacted,it uses a:

• A)quota.
• B)price control.
• C)price ceiling.
• D)price floor.

---

Definitions:

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.

Sales Returns

Transactions where customers return previously purchased merchandise, possibly due to defects or dissatisfaction, impacting the seller's revenue.

Freight-in

The cost of shipping goods to the buyer's location, which is often included in the inventory cost.

Supplies Expense

The cost associated with the consumption of supplies utilized during an accounting period in the operation of a business.