One of the Factors Contributing to the Fact That Labor

question 88

Multiple Choice

One of the factors contributing to the fact that labor productivity is higher in the U.S. than in the People's Republic of China is:

• A) China's larger stock of capital.
• B) the higher capital/labor ratio in China.
• C) the higher capital/labor ratio in the U.S.
• D) China's smaller stock of fossil fuels.
• E) the fact that much labor in the U.S. is in management.

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Definitions:

Job Cost

The total cost of materials, labor, and overhead allocated to a specific job or project.

Unit Product Cost

The cost assigned to a single unit of product, combining direct materials, direct labor, and manufacturing overhead expenses.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate manufacturing overhead costs to individual products based on a common activity base.

Markup

The amount added to the cost price of goods to cover overhead and profit.