______ Cause(s) the Capital Stock to Rise, While ______ Cause(s)

question 77

Multiple Choice

______ cause(s) the capital stock to rise, while ______ cause(s) the capital stock to fall.

• A) Inflation; deflation
• B) Interest rates; the discount rate
• C) Investment; depreciation
• D) International trade; depressions

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Definitions:

Fixed Manufacturing Overhead

Costs associated with production that do not vary with the level of output, such as depreciation of machinery and the salary of the factory manager.

Job Cost

The total cost of labor, materials, and overhead allocated to a specific job or project.

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead to individual products or job orders, calculated before the accounting period begins based on estimated costs and activity levels.

Direct Labor-hours

Refers to the total hours worked by employees who are directly involved in the production process, directly affecting the manufacturing of goods.