Which of the Following Is an Example of Privatization

question 57

Multiple Choice

Which of the following is an example of privatization?

• A) The federal government contracts with a private firm to operate a youth detention center.
• B) A private business receives funding from the government to buy fair-trade products.
• C) The government requires a hospital to purchase liability insurance through a government agency.
• D) A public library receives a grant from the government to update its civics book collection.
• E) A private business is able to reduce its overall spending by outsourcing some production to a government agency.

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Definitions:

Standard Variable Overhead Rate

The rate used in budgeting and costing that applies variable overheads to a specific activity basis such as labor hours.

Direct Labour Hours

The aggregate hours employees devoted to the process of production have logged.

Variable Overhead

Costs that vary with the level of output, such as utilities and labor, as opposed to fixed overheads.

Actual Direct Labour Hours

The actual time spent by labor directly involved in the production of goods or service delivery.