Which of the Following Statements Is True

question 74

Multiple Choice

Which of the following statements is true?

• A) Investment in public capital is a source of economic growth, but investment in private capital is not.
• B) Investment in private capital is a source of economic growth, but investment in public capital is not.
• C) Investment in both private and public capital is conducive to economic growth and higher productivity.
• D) Neither investment in private nor public capital has any effect on economic growth and productivity.

---

Definitions:

Machine-Hours

An indicator of how much is produced or the level of activity in manufacturing, determined by the total hours that machinery is in use during the production process.

Job-Order Costing

A costing method used to calculate the production costs of individual units or batches of products, making it especially useful for customized orders in manufacturing or service industries.

Plantwide Overhead Rate

An overhead allocation rate applied uniformly to all products or services based on overall plant activity, ignoring individual departmental differences.

Direct Labor-Hours

Refers to the measurable amounts of work effort contributed directly by laborers on the manufacturing floor towards the production of goods.