An Increase in the Tariff on Foreign-Produced Automobiles Would Most

question 39

Multiple Choice

An increase in the tariff on foreign-produced automobiles would most likely help

• A) the domestic producers of automobiles.
• B) steel producers that sell most of their output to foreign producers of automobiles.
• C) workers in the foreign automobile industry.
• D) consumers looking for alternatives to domestic automobiles.

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Definitions:

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of the production costs.

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially completed goods in terms of fully completed units.

Manufacturing Overhead

Costs, other than direct materials and direct labor costs, that are incurred in the manufacturing process.

Factory Overhead

encompasses all indirect costs associated with manufacturing operations, including utilities, maintenance, and factory manager salaries.