The Business Cycle Occurs From

question 37

Multiple Choice

The business cycle occurs from:

• A) changes in industry demand.
• B) changes in local supply and taxes.
• C) changes in weather.
• D) changes in the costs of production and in total spending.

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Definitions:

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services and are considered a variable cost.

Factory Overhead

All indirect costs incurred during the manufacturing process, excluding direct materials and direct labor.

Factory Rent

Factory rent refers to the cost associated with leasing a premise for manufacturing operations, classified as an overhead expense in accounting.

Prime Costs

The sum of expenses for the raw materials and labor directly involved in the manufacturing of a product.