Among the Business Innovations That Contributed to the Development of Modern

question 36

Multiple Choice

Among the business innovations that contributed to the development of modern capitalism were all of the following EXCEPT

• A)maritime insurance.
• B)joint-stock companies.
• C)the antecedent to the modern check.
• D)the elimination of double-entry bookkeeping.
• E)business techniques developed in southern Europe.

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Definitions:

Overapplied Overhead

The condition where the amount of manufacturing overhead allocated to products exceeds the actual overhead costs incurred.

Cost of Goods

The total expense incurred in acquiring or manufacturing the products sold by a business, typically including raw materials and labor costs.

Job-Order Costing

A costing method used where each job is costed separately and includes all materials, labor, and overhead specific to that job.

Underapplied Overhead

This occurs when the actual manufacturing overhead costs incurred exceed the allocated manufacturing overhead cost.