Technology Is an Important Factor in Explaining the High Incomes

question 89

Multiple Choice

Technology is an important factor in explaining the high incomes of superstars because

• A) technology accounts for differences in incomes within all occupations.
• B) technology makes it possible for the best producer to supply every customer at low cost.
• C) technology that can limit access to the superstars is available.
• D) only technologically-literate superstars can earn super incomes.

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Definitions:

Support Department

A division within an organization that provides essential services or support to the primary operations or profit centers.

Finishing Department

The section in manufacturing where products undergo final processing, assembly, or completion.

Cost Allocated

The distribution of indirect costs to different cost objects, to fairly attribute overhead expenses to products or services.

Plantwide Rate

A single overhead absorption rate used throughout an entire manufacturing plant, applying the same rate to all products regardless of the department.