Underemployment Occurs _____

question 166

Multiple Choice

Underemployment occurs _____

• A) when skilled workers are employed in low-skill jobs.
• B) when workers who are willing and able to work cannot find a job.
• C) when workers drop out of the labor force in frustration.
• D) only when a country adopts an export-promotion strategy.
• E) only when a country adopts an import-substitution strategy.

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Definitions:

Unadjusted Cost of Goods Sold

The initial calculation of all costs directly associated with the production of goods sold by a company, not including any adjustments for inventory methods or valuation changes.

Operations

The day-to-day activities involved in running a business that are necessary for producing goods and services and generating revenue.

Direct Labor-Hours

The total hours worked by employees directly involved in the production process, used as a basis for assigning labor costs to products.

Predetermined Overhead Rate

An estimated overhead rate used to apply manufacturing overhead costs to products, calculated before the costs are actually incurred.