Which of the Following Is Assumed to Be the Most

question 146

Multiple Choice

Which of the following is assumed to be the most important motivation for producers?

• A) The desire to minimize external costs.
• B) The desire to maximize economic profits.
• C) The desire to minimize social costs above private costs.
• D) The desire to maximize social benefits and private revenues at the same time. The basic incentive for producing goods and services is the expectation of profit.

Understand the distinctions between standard, actual, and budgeted costs.

Acknowledge the responsibility of various departments in affecting cost variances.

Comprehend different types of variances, including cost, sales, and volume variances.

Learn about the impact of skill levels and continuity in processes on labor and efficiency variances.

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Definitions:

Random Variable

A variable whose values depend on outcomes of a random phenomenon, with each outcome associated with a different value or set of values.

Occurrences

The instances or times that something happens or arises; the frequency of events.

Expected Value

The anticipated value or mean outcome of a variable, calculated as the sum of all possible values each multiplied by its probability of occurrence.

Sample Information

Data collected from a subset of a larger group or population to infer or analyze characteristics of the whole group.