The Production Possibilities Model Holds _____ and _____ Constant

question 118

Multiple Choice

The production possibilities model holds _____ and _____ constant.

• A) growth; human capital
• B) land; labor
• C) labor; capital
• D) resources; technology

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Definitions:

Predetermined Overhead

An estimated rate used to assign overhead costs to products or services based on a planned amount of overhead and a planned allocation base.

Direct Labor

Workers who are directly involved in the manufacturing of goods or provision of services, whose labor costs are directly attributed to the product or service.

Raw Materials

Fundamental substances utilized as the starting point in the manufacturing process to create products.

Predetermined Overhead

An estimated amount of overhead cost assigned to each unit of production in advance of the actual production.