If the Consumption Function Is C = 100 + 0

question 257

Multiple Choice

If the consumption function is C = 100 + 0.8Y, then the Savings Function is

• A) S = 100 + 0.8 Y.
• B) S = - 100 + 0.8Y.
• C) S = - 100 + 0.2Y.
• D) S = 100 + 0.2Y.

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Definitions:

Manufacturing Overhead

Costs, other than direct materials and direct labor costs, that are incurred in the manufacturing process.

Direct Labor Hours

The time spent by workers directly involved in the production process of goods or services, often used to allocate labor costs to products.

Overapplied

A situation in cost accounting when the allocated or applied costs exceed the actual costs incurred.

Underapplied

In cost accounting, it refers to a situation where the allocated costs are less than the actual costs incurred.