Which of the Following Was a Major Cause of Inflation

question 35

Multiple Choice

Which of the following was a major cause of inflation in the 1970s?

• A) Deregulation of the airline and trucking industries
• B) Increased industrial productivity
• C) Tight credit policies
• D) OPEC price increases

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Definitions:

Predetermined Overhead Rate

A rate used to allocate manufacturing overhead costs to products or job orders, based on estimated costs and activity levels.

Machine Hours

A measure of production activity or cost allocation based on the number of hours a machine is operated.

Overapplied Overhead

Refers to the situation where the allocated overhead cost is more than the actual overhead incurred by a business.

Predetermined Overhead Rate

An estimated rate used to assign overhead costs to products or services based on a specific activity base.