The Low Point of Economic Activity During a Business Cycle

question 231

Multiple Choice

The low point of economic activity during a business cycle is called the

• A) recession.
• B) trough.
• C) peak.
• D) failure.

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Definitions:

Indirect Labor Cost

Costs related to employees who assist in the production process but do not actively work on the product, such as maintenance staff and supervisors.

Manufacturing Overhead

All indirect costs associated with the production process, including utilities, depreciation, and supervision expenses, not directly tied to specific product units.

Job-order Costing System

An accounting method that assigns costs to specific production batches or projects, tracking the direct and indirect costs involved.

Job Cost Sheet

A form that records the direct materials, direct labor, and manufacturing overhead cost charged to a job.