The Average Home in Hong Kong Is Much Smaller in Size

question 15

Multiple Choice

The average home in Hong Kong is much smaller in size than in Australia. How is the difference related to land being more expensive in Hong Kong?

• A) As land is more expensive, real estate developers build high-rise apartments.
• B) As land is more expensive, real estate developers build smaller homes.
• C) As land is more expensive, the price of housing is higher, so people buy smaller homes.
• D) None of the above.

---

Definitions:

Overapplied Overhead

A situation where the allocated overhead costs exceed the actual overhead expenses incurred.

Machine-Hours

A unit of measure indicating the total time production machinery is operated, used in calculating manufacturing costs and efficiencies.

Cost of Work

This could refer to the total expenses associated with performing a particular job or task, including labor, materials, and overhead costs.

Overapplied Overhead

A scenario in which the overhead costs assigned surpass the real overhead expenses incurred.