Behavioral Economists Want To

question 26

Multiple Choice

Behavioral economists want to:

• A) eliminate the supply and demand model.
• B) eliminate heuristic models.
• C) eliminate traditional economic building blocks.
• D) maintain supply and demand models.

---

Definitions:

Allocation Bases

Criteria or methods used for distributing indirect costs to different products, services, or departments based on predefined factors such as labor hours, machine hours, or material costs.

Direct Labor Hours

Measures the total hours worked by employees directly involved in the production process, used for calculating labor costs and efficiency.

Machine Hours

A measure of the amount of time a machine is operated, used to allocate machine costs to products or job orders.

Single Plantwide Rate

A method of allocating manufacturing overhead to products using one uniform overhead rate throughout the entire plant or factory.