Senator Perkins Is Interested in Making Laws That Will Reduce

question 71

Multiple Choice

Senator Perkins is interested in making laws that will reduce the number of car crashes involving teens. Based on the scientific research in this chapter, which advice should he follow as he drafts a bill?

• A) Encourage teens to drive alone.
• B) Encourage adults to ride along with teen drivers.
• C) Encourage teens to drive with their peers.
• D) Encourage teens to drive with one peer at a time.

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Definitions:

Unit Product Cost

The total cost (direct materials, direct labor, and overhead) to produce one unit of a product.

Absorption Costing

An accounting method that includes all manufacturing costs (direct material, direct labor, and both variable and fixed manufacturing overhead) in the cost of a product.

Net Operating Income

A company's total earnings from its operations, excluding taxes and interest.

Absorption Costing

A cost accounting procedure that comprises adding up all expenses involved in manufacturing—direct materials, direct labor, and manufacturing overhead, both fixed and variable—to the cost of the product.