Although Specialization of Labor Increases Efficiency of Production, It Can

question 231

Multiple Choice

Although specialization of labor increases efficiency of production, it can lead to another major problem:

• A)the need to exchange goods among producers.
• B)the need to remain fully employed.
• C)the depletion of natural resources.
• D)assuring that exchange leads to mutual gains.
• E)All of the above are correct.

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Definitions:

Overhead Cost

Indirect costs associated with manufacturing or producing goods, not directly tied to a specific product, including utilities, rent, and salaries of support staff.

Activity Cost Pools

Aggregations of all the costs associated with a particular business activity or process, used in activity-based costing.

Machine-Hours

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

Batches

Groups or sets of goods that are processed or produced together within a production cycle or process.