To Affect the Market Outcome, a Price Ceiling

question 123

Multiple Choice

To affect the market outcome, a price ceiling

• A)must be set below the black market price.
• B)must be set below the legal price.
• C)must be set below the price floor.
• D)must be set below the equilibrium price.

---

Definitions:

Equivalent Units

A concept used in cost accounting to express the amount of work done by incomplete units in terms of complete units of output.

First-In, First-Out

An inventory valuation method that assumes goods are sold in the order they are acquired, so older inventory is used up first.

Cost Of Production Report

A detailed report summarizing the total costs involved in manufacturing a product, including material, labor, and overhead costs.

Department Accountability

The responsibility of departments within an organization to perform their functions correctly, efficiently, and to be answerable for their actions and outcomes.