An Economic Model Includes

question 130

Multiple Choice

An economic model includes

• A)only normative statements.
• B)only details considered essential.
• C)both normative and positive statements.
• D)all known details in order to increase its accuracy.

---

Definitions:

Automated Manufacturing

The use of computer-controlled machinery and robotics in the production process to increase efficiency and reduce human error.

Activity Base

A measure used to assign costs to cost objects based on their use of activities, often used in activity-based costing.

Direct Labor Hours

The total hours worked by employees directly involved in manufacturing a product or providing a service.

Machine Hours

A measurement of the amount of time a machine is operated, used in allocating manufacturing costs to products.