To Increase Efficiency

question 13

Multiple Choice

To increase efficiency,

• A)taxes are used to overcome both external benefits and external costs.
• B)subsidies are used to overcome both external benefits and external costs.
• C)subsidies are used to overcome external benefits, and taxes to overcome external costs.
• D)taxes are used to overcome external benefits, and subsidies to overcome external costs.
• E)emissions charges are used to overcome external benefits, and vouchers to overcome external costs.

Examine the practicality concerns associated with various assessment techniques.

Understand the role and construction of different rating scales.

Distinguish between various types of informal assessment instruments.

Recognize the potential for performance-based assessments to minimize racial and cultural biases.

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Definitions:

Overhead

Overhead refers to the ongoing business expenses not directly attributed to creating a product or service, including costs like rent, utilities, and insurance.

Direct Labor-Hours

The total hours worked by labor directly involved in the manufacturing process, crucial for calculating labor costs and efficiencies.

Product G1

This term is likely specific to a company or industry and denotes a particular product or model designated as "G1".

Traditional Costing

An accounting method that applies indirect costs to products based on a predetermined rate, not necessarily reflecting the actual usage of resources.