Which One of the Following Statements About the Budget Line

question 120

Multiple Choice

Which one of the following statements about the budget line is false? The budget line

• A)separates affordable consumption points from unaffordable consumption points.
• B)is based on fixed prices.
• C)is based on fixed income.
• D)is based on fixed quantities.
• E)constrains consumer choices.

---

Definitions:

Direct Labour Costs

Expenses that a company incurs for labor directly involved in the production of goods or services, often a significant component of total production costs.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, depreciation, and maintenance expenses.

Predetermined Overhead Rate

A rate calculated at the beginning of the period, used to assign overhead costs to products or services based on a consistent formula.

Direct Labour

The wages paid to workers who are directly involved in the production of goods or the provision of services.