A Good or Service Is Considered Scarce If

question 99

Multiple Choice

A good or service is considered scarce if

• A)any quantity of it can be consumed at a zero price
• B)the amount people desire exceeds the amount available at a zero price
• C)the amount people desire exceeds the amount available at any price
• D)the amount people desire is less than the amount available at any price
• E)the amount people desire is less than the amount available at a zero price

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Definitions:

Cost of Goods Manufactured Formula

A calculation used to determine the total production cost of goods completed during a specific period.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and considered a variable cost.

Factory Overhead

All indirect costs associated with manufacturing, such as indirect labor, maintenance, and utilities, that cannot be directly traced to specific units produced.

Manufacturing Costs

Expenses directly related to the production of goods, including direct materials, direct labor, and manufacturing overhead.