Which of the Following Will Increase the Level of Human

question 23

Multiple Choice

Which of the following will increase the level of human capital in an economy?

• A)An increase in land mass.
• B)An increase in literacy rates.
• C)An increase in factory capacity.
• D)A decrease in the population.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of goods sold and excludes fixed manufacturing overhead.

Absorption Costing

A costing method that includes both variable and fixed manufacturing overhead costs in the cost of a product.

Net Income

The net income a business realizes once it has subtracted all outgoings and fiscal charges from its revenue.

Absorption Costing

A costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.