When a Manufacturing Company Has a Highly Automated Manufacturing Plant

question 37

Multiple Choice

When a manufacturing company has a highly automated manufacturing plant producing many different products,which of the following is the more appropriate basis of applying manufacturing overhead costs to work in process?

• A)direct labor hours
• B)direct labor dollars
• C)machine hours
• D)cost of materials used

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling over a specific period.

Fiscal Policies

Government policies related to taxation and spending that aim to influence the overall economy.

Short Run

A period of time during which at least one input, such as plant size, is fixed and cannot be changed.

Unemployment

The condition in which individuals who are capable of working and are seeking work are unable to find employment.