A Major Criticism of Foreign Aid to Developing Nations Is

question 217

Multiple Choice

A major criticism of foreign aid to developing nations is that it

• A) provides incentives to reduce the role of government.
• B) is capital-using rather than capital-saving when it is spent.
• C) encourages dependency rather than self-sustained growth.
• D) leads to widespread underemployment and unemployment.

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Definitions:

Fixed Manufacturing Overhead Rate

The rate at which fixed manufacturing overhead costs are allocated to products, typically based on labor hours or machine hours.

Fixed Overhead Budget Variance

The difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs.

Applied Fixed Overhead Cost

The portion of fixed overhead costs that is allocated to the production process during a specific period.

Budgeted Fixed Overhead Cost

Budgeted fixed overhead cost is the projected amount of fixed costs that are expected to be incurred during a specific period, used for budgeting purposes.