Which Example Illustrates Cyclical Unemployment

question 68

Multiple Choice

Which example illustrates cyclical unemployment?

• A) An autoworker is laid off because a recession has caused a decline in sales.
• B) A geologist is permanently laid off from an oil company because of a technological advance.
• C) A worker at a fast-food restaurant quits work and attends college.
• D) A real estate agent leaves a job in Texas and searches for a similar, higher-paying job in California.

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Definitions:

Overhead Assigned

The process of allocating indirect costs to specific cost objects, such as products, services, or departments.

Direct Labor-Hours

Direct labor-hours represent the total hours worked by employees directly involved in the manufacturing process, serving as a basis for allocating labor costs to products.

Traditional Costing

An accounting method that allocates manufacturing overhead based on the volume of a cost driver, such as the amount of labor or materials used.

Overhead Applied

The portion of overhead costs allocated to individual product units or service engagements based on a predetermined rate.