If Two Jobs (X and Y)are Similar,and There Is an Increase

question 58

Multiple Choice

If two jobs (X and Y) are similar,and there is an increase in the non-monetary benefits of job X,with no change in the non-monetary benefits of job Y,we would expect

• A) there to be differences in the money wages of job X and job Y.
• B) wages to be higher for job X than for job Y.
• C) workers to move to job X until money wages are the same for both jobs.
• D) workers to move to job Y until money wages are the same for both jobs.
• E) unions to intervene on behalf of workers in job Y.

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Definitions:

Job-Order Costing

An accounting methodology used for tracking the production costs (materials, labor, and overhead) of custom products or jobs, allowing for detailed monitoring and costing of individual orders.

Ending Balance

The final amount in an account at the end of an accounting period after all debits and credits are accounted for.

Overapplied Overhead

This occurs when the overhead costs allocated to products or jobs exceed the actual overhead costs incurred.

Manufacturing Overhead

includes all production costs other than direct materials and direct labor, such as indirect materials, indirect labor, and factory-related expenses.