Use the Following to Answer Question

question 8

Multiple Choice

Use the following to answer question
This figure depicts gas prices for the month of August from 1976 to 2004.(Data were extracted from the Bureau of Labor Statistics Web site.)
Figure: Gas Prices
-(Figure: Gas Prices) Identify the type of graph depicted in the figure.

• A) histogram
• B) time series plot
• C) Pareto chart
• D) line graph

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Definitions:

Direct Materials

Fundamental components directly associated with the creation of a specific item or provision of a service.

Direct Labor

The cost of employee labor that is directly involved in the manufacturing or production of goods or services.

Factory Overhead

Represents all indirect costs associated with the production process, including utilities, maintenance, and managerial salaries not directly traceable to specific products.

Factory Overhead Rates

The rates at which indirect manufacturing costs are applied to units produced, based on a predetermined allocation base.