In Terms of Contribution to Total U

question 76

Multiple Choice

In terms of contribution to total U.S.income,the factor of production that receives the SMALLEST share is:

• A)capital.
• B)labor.
• C)land.
• D)entrepreneurship.

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Definitions:

Reciprocal Services Method

An accounting method used to allocate costs in situations where support departments provide services to each other as well as to production departments.

Support Department Costs

Expenses associated with departments that do not directly generate revenue but provide essential services to other departments, like IT and HR.

Assembly Department

A section within a manufacturing plant where components are assembled into final products.

Practical Capacity

The maximum level of work that an organization can achieve under normal working conditions.