A Government Agricultural Policy That Restricts Output by Limiting the Number

question 37

Multiple Choice

A government agricultural policy that restricts output by limiting the number of farm acres that can be used to produce a particular crop is the

• A)marketing quota system.
• B)acreage allotment program.
• C)price support program.
• D)target price system.
• E)paying farmers not to produce system.

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Definitions:

Direct Materials Budget

A financial plan that estimates the raw materials needed to meet production goals and the costs associated with purchasing them.

Ending Direct Materials

The value of materials that are available for use at the end of a specific accounting period, after accounting for beginning inventory and any purchases or usage during the period.

Beginning Direct Materials

The cost of raw materials available for use in production at the start of an accounting period.

Merchandise Purchases Budget

An estimation of the cost of goods a retail company plans to buy for a specific period.