Specialization in Production

question 58

Multiple Choice

Specialization in production

• A)Decreases total world output.
• B)Increases output.
• C)Reduces the standard of living.
• D)Makes a country weak.

---

Definitions:

Variable Overhead

Costs that vary with production volume, such as utilities or materials, as opposed to fixed overhead costs.

Direct Materials

Raw materials that can be directly attributed to the production process of specific goods or services.

Direct Labor-Hours

A measure of the work done by production workers, calculated in hours.

Variable Overhead

Variable overhead refers to costs that change in proportion to the production activity or business operations levels, such as utilities or materials.