The Assignment of Inputs to Specific Industries by Central Planners

question 106

Multiple Choice

The assignment of inputs to specific industries by central planners is made difficult by

• A)the interdependency among industries.
• B)lack of data for decision making.
• C)the danger of a chain reaction among industries if an error is made at any point.
• D)All of the above are correct.

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Definitions:

Finishing Department

The last stage in the manufacturing process where products are completed, inspected, and prepared for sale or distribution.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual units of production, based on a chosen activity base.

Direct Labor-Hours

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

Machine-Hours

A measure of production time, quantified in hours, that machinery is operating to perform work.