Which of the Following Correctly States the Effect of Additional

question 10

Multiple Choice

Which of the following correctly states the effect of additional schooling on average personal income?

• A) Earning a high school diploma and a college degree does not change average personal income
• B) Earning a high school diploma does not affect personal income, but earning a college degree raises personal income.
• C) Earning a high school diploma raises personal income, but earning a college degree does not affect personal income.
• D) Earning a high school diploma and earning a college degree both raise personal income.

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Definitions:

Plantwide Overhead Rate Method

A method of allocating manufacturing overhead costs to products based on a single, plant-wide rate, often using direct labor hours or machine hours as the allocation base.

Cost Objects

Any item for which a separate measurement of costs is desired; examples include a product, a service, a project, or a customer.

ABC

Can refer to Activity-Based Costing, a method of assigning costs to products or services based on the resources they consume.

Activities

In a business context, activities refer to the various tasks, operations or functions performed within the organization to achieve its objectives.