A Plan That Reports the Units or Costs of Merchandise

question 93

Multiple Choice

A plan that reports the units or costs of merchandise to be purchased by a merchandising company during the budget period is called a:

• A) Selling expenses budget.
• B) Merchandise purchases budget.
• C) Sales budget.
• D) Cash budget.
• E) Capital expenditures budget.

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Definitions:

Consumer's Surplus

The disparity between the amount customers are prepared to spend on a product or service and the actual price they pay.

Earplugs

A device inserted in the ear canal to protect the ears from loud noises, water, or foreign bodies.

Utility Function

A mathematical representation of a consumer's preference orderings over a set of goods and services.

Equivalent Variation

An economic measure of the change in income needed to maintain utility after a price change, keeping utility constant before and after the change.