Scarcity

question 71

Multiple Choice

Scarcity:

• A) does not exist.
• B) implies that people must make a choice.
• C) exists only in developed countries.
• D) exists only in developing countries.

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Definitions:

Direct Labor-Hours

A measure of the work input in terms of hours that can be directly attributed to the production process.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a selected activity base, like direct labor hours or machine hours.

Machine-Hours

A measure of the total time machines are operated within a production process, often used for allocating costs based on machine usage.

Fixed Manufacturing Overhead

Costs that do not change with the level of production, such as rent, salaries, and insurance, related to the production process.