Which of the Following Is Not a Factor in Shifting

question 123

Multiple Choice

Which of the following is not a factor in shifting the production possibilities curve?

• A) The amount of inputs such as labor and capital
• B) The productivity of inputs
• C) The level of technology
• D) Government regulations limiting trade

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Definitions:

Predetermined Overhead Rate

The rate calculated before the period begins, used to allocate manufacturing overhead costs to individual units of production based on a consistent measure, such as direct labor hours.

Manufacturing Overhead

Indirect factory-related costs that are not directly tied to a specific product, such as maintenance and factory utilities.

Overapplied

In cost accounting, refers to a situation where the allocated amount of an indirect cost exceeds the actual incurred cost.

Underapplied

A situation where the allocated costs are less than the actual costs incurred, often in the context of manufacturing overhead.