Which of the Following Statements Is True

question 118

Multiple Choice

Which of the following statements is true?

• A) The overhead budget is typically composed of variable overhead and fixed overhead.
• B) The direct labor budget uses an average wage rate for direct labor.
• C) The production budget is not converted into dollars.
• D) The sales budget includes both units and dollars.
• E) All of these.

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Definitions:

Trade

The exchange of goods, services, or both between parties, often involving the transfer of money.

Commodity

A basic good used in commerce that is interchangeable with other goods of the same type; commodities are often used as inputs in the production of other goods or services.

Comparative Advantage

The competency of a country, individual, corporation, or region to manufacture a good or provide a service at a reduced opportunity cost than that of its competition.

Relative Efficiency

A measure of how effectively an entity (such as a firm or economy) utilizes its resources compared to another, often used to identify opportunities for improvement.