Which of the Following Does Not Describe the Effect of Cotton

question 25

Multiple Choice

Which of the following does not describe the effect of cotton manufacturing in Great Britain?

• A)A staple industry in England relied on imported raw materials.
• B)Handmade goods were still in great demand because of lower price and higher quality.
• C)The use of cotton goods actually improved public health.
• D)The need for cotton shifted British trade patterns to the New World and away from Asia.
• E)The cotton trade linked the economies of various nations and peoples.

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Definitions:

Multiple Overhead Rate

The use of more than one overhead rate to allocate a company's indirect costs more accurately than a single overhead rate.

Plantwide Overhead Rate

A single overhead absorption rate used throughout an entire plant or factory, applied uniformly to all cost objects.

Labor-Intensive

Describes a process or industry that requires a high input of labor compared to capital.

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or services based on a certain activity base.